nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2010‒03‒06
three papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Intellectual property rights, human capital and the incidence of R&D expenditures By Bravo-Ortega, Claudio; Lederman, Daniel
  2. Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector By Haskel, Jonathan; Wallis, Gavin
  3. Monopoly innovation and welfare effects By Yao, Shuntian; Gan, Lydia

  1. By: Bravo-Ortega, Claudio; Lederman, Daniel
    Abstract: Numerous studies predict that developing countries with low human capital may not benefit from the strengthening of intellectual property rights. The authors extend an influential theoretical framework to highlight the role of intellectual property rights in the process of innovation and structural change. The resulting theory is consistent with a stylized fact that appears in the data, namely that countries with poor intellectual-property protection may accumulate human capital without a corresponding increase in research and development investment as a share of national income. The model predicts that without minimum intellectual-property protection, additional education may result in more imitation rather than innovation. The preponderance of the econometric evidence presented in this paper suggests that interactions between human capital and intellectual property rights determine global patterns of research and development effort, and intellectual property rights tend to raise the effect of education on the incidence of research and development.
    Keywords: Economic Theory&Research,E-Business,Debt Markets,Labor Policies,Knowledge for Development
    Date: 2010–02–01
  2. By: Haskel, Jonathan (Imperial College London); Wallis, Gavin (University College London)
    Abstract: Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other “research” activities, such as software. Second, argument still rages about the efficacy of direct public spending on R&D via spending on academic research councils, universities, and government undertaken work on civil and military R&D. To evaluate these questions we use data on market sector productivity, R&D and non-R&D intangible assets, and public sector R&D spending. We look for evidence of market sector spillovers from intangible investment and from public R&D. We find (a) no evidence of spillover effects from intangible investment at the market sector level, including from R&D, (b) strong evidence of market sector spillovers from public R&D spend on research councils, and (c) no evidence of market sector spillovers from public spending on civil or defence R&D. Our findings tentatively suggest that for maximum market sector productivity impact government innovation policy should focus on direct spending on research councils.
    Keywords: intangible assets, productivity, R&D, spillovers
    JEL: O47 E22
    Date: 2010–02
  3. By: Yao, Shuntian; Gan, Lydia
    Abstract: In this paper we study the welfare effect of a monopoly innovation. Unlike many partial equilibrium models carried out in previous studies, general equilibrium models with non-price-taking behavior are constructed and analyzed in greater detail. We discover that technical innovation carried out by a monopolist could significantly increase the social welfare. We conclude that, in general, the criticism against monopoly innovation based on its increased deadweight loss is less accurate than previously postulated by many studies. --
    Keywords: Monopoly,social welfare,technical innovation,general equilibrium
    JEL: D50 D60
    Date: 2010

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