nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒03‒07
two papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Has EU accession boosted patents performance in the EU-13? -- A critical evaluation using causal impact analysis with Bayesian structural time-series models By Agnieszka Kleszcz; Krzysztof Rusek
  2. Are Ideas Really Getting Harder To Find? R&D Capital and the Idea Production Function By Jakub Growiec; Peter McAdam; Jakub Mućk

  1. By: Agnieszka Kleszcz; Krzysztof Rusek
    Abstract: Nowadays innovation is one of the main determinants of economic development. Patents are a key measure of innovation output, as patent indicators reflect the inventive performance of countries, technologies and firms. This paper provides new insights on the causal effects of the enlargement of the European Union (EU) by investigating the patents performance within the new EU member states (EU-13). The empirical results based on data collected from the OECD database from 1985-2017 and causal impact using a Bayesian structural time-series model (proposed by Google) point towards a conclusion that joining the EU has had a significant impact on patents performance in Romania, Estonia, Poland, Czech Republic, Croatia and Lithuania, although in the latter two countries the impact was negative. For the rest of the EU-13 countries there is no significant effect on patent performance. Whether the EU accession effect is significant or not, the EU-13 are far behind the EU-15 (countries which entered the EU before 2004) in terms of patent performance. The majority of patents (98.66\%) are assigned to the EU-15, with just 1.34\% of assignees belonging to the EU-13.
    Date: 2022–01
  2. By: Jakub Growiec; Peter McAdam; Jakub Mućk
    Abstract: We supplement the 'Idea Production Function' (IPF) with measures of R&D capital. We construct a time series of R&D capital stock in the US (1968-2019) based on cumulated R&D investment. We estimate the IPF with patent applications as R&D output, allowing for a flexible treatment of unit productivity of R&D capital and R&D labor. We find that the elasticity of substitution between R&D input factors is 0.7-0.8 and significantly below unity. This implies that R&D capital is an essential factor in producing ideas, complementary to R&D labor. We also identify a systematic positive trend in R&D labor productivity at about 1% per year on average and a cyclical trend in R&D capital productivity. Our results suggest that instead of 'ideas getting harder to find', there is an increasing scarcity of R&D capital needed to find them.
    Keywords: R&D, Long-Run Growth, Technical Change, Estimation, CES.
    JEL: O30 O40 O47
    Date: 2022–02

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