nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒11‒21
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Endogenous Innovation Scale and Patent Policy in a Monetary Schumpeterian Growth Model By Yu, Po-yang; Lai, Ching-Chong
  2. How a Brand's Social Activism Impacts Consumers' Brand Evaluations: The Role of Brand Relationship Norms By Jingjing Li; Nicole Montgomery; Reza Mousavi
  3. On the Elasticity of Substitution between Labor and ICT and IP Capital and Traditional Capital By Vahagn Jerbashian

  1. By: Yu, Po-yang; Lai, Ching-Chong
    Abstract: This paper develops a monetary R&D-driven endogenous growth model featuring endogenous innovation scales and the price-marginal cost markup. To endogenize the step size of quality improvement, we propose a trade-off mechanism between the risk of innovation failure and the benefit of innovation success in R&D firms. Several findings emerge from the analysis. First, a rise in the nominal interest rate decreases economic growth; however, its relationship with social welfare is ambiguous. Second, either strengthening patent protection or raising the professional knowledge of R&D firms leads to an ambiguous effect on economic growth. Third, the Friedman rule of a zero nominal interest rate fails to be optimal in view of the social welfare maximum. Finally, our numerical analysis indicates that the extent of patent protection and the level of an R&D firm’s professional knowledge play a crucial role in determining the optimal interest rate.
    Keywords: Intellectual property rights; Economic growth; Endogenous innovation scales; Endogenous markups; Inflation
    JEL: E41 L11 O30 O40
    Date: 2022–10–17
  2. By: Jingjing Li; Nicole Montgomery; Reza Mousavi
    Abstract: Brands are facing heightened pressure from consumers to address social justice issues via social media channels. However, little guidance has been provided about whether and how a brand should engage in such conversations online. We use a multi-discipline, multi-data, and multi-method approach to clarify the conditions under which social justice activism impacts consumers' brand evaluations, as well as the effective social media response strategies that brands can use. Through secondary data analysis on Twitter and two randomized experiments, we find that social justice activism and brand type (low communal, high communal) interact to affect consumers' brand evaluations. In online contexts that feature social justice activism, consumers evaluate high (vs. low) communal brands less favorably. Yet, in online contexts devoid of social justice activism, these evaluation differences are attenuated. We attribute these findings to differences in the extent to which high versus low communal brands are perceived to comply with relationship norms in a social justice activism context. We show that such differences can be attenuated when brands utilize a high empathy response on social media to engage in social justice conversations. Our findings contribute to the literature on social justice and IS, brand relationships, and crisis communication.
    Date: 2022–10
  3. By: Vahagn Jerbashian
    Abstract: I estimate CES aggregate production functions for the US, the UK, Japan, Germany, and Spain using data from the EU KLEMS database. I distinguish between three types of capital: information and communication technologies (ICT), intellectual property (IP) capital, and traditional capital. I assume that the aggregate output is produced using labor and these three types of capital and allow for differences in the elasticities of substitution between labor, an aggregate of ICT and IP capital, and traditional capital. The estimated elasticities of substitution between ICT and IP capital are strictly below one for all sample countries implying gross complementarity. ICT and IP capital together are gross substitutes for labor while traditional capital is a gross complement. The results for the US imply that the fast pace of technological progress in ICT and IP capital accumulation together are responsible for about 80 percent of the fall in labor income share.
    Keywords: CES production function, elasticities of substitution, system of equations, ICT, IP capital, traditional capital
    JEL: E22 E25 J23 O33
    Date: 2022

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