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Should the government protect its basic research?

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  • Cozzi, Guido
  • Galli, Silvia

Abstract

Basic research is mainly performed publicly. Yet in the US public research findings were not patentable until 1980, and in other countries are not yet patentable. Patentability renders public research more directed, with less potential waste, but it also restricts private applied research. This paper shows, by means of a multi-stage Schumpeterian growth model, that in the long run the first effect is bound to dominate.

Suggested Citation

  • Cozzi, Guido & Galli, Silvia, 2017. "Should the government protect its basic research?," Economics Letters, Elsevier, vol. 157(C), pages 122-124.
    • Handle: RePEc:eee:ecolet:v:157:y:2017:i:c:p:122-124
    DOI: 10.1016/j.econlet.2017.06.017
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    2. Ufuk Akcigit & Douglas Hanley & Nicolas Serrano-Velarde, 2021. "Back to Basics: Basic Research Spillovers, Innovation Policy, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 1-43.
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    Cited by:

    1. Fukuda, Katsufumi, 2019. "Effects of trade liberalization on growth and welfare through basic and applied researches," Journal of Macroeconomics, Elsevier, vol. 62(C).
    2. Hans Gersbach & Ulrich Schetter & Maik T. Schneider, 2021. "Macroeconomic Rationales For Public Investments In Science," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 575-599, April.
    3. Cozzi, Guido & Galli, Silvia, 2022. "Covid-19 Vaccines, Innovation, and Intellectual Property Rights," GLO Discussion Paper Series 1095, Global Labor Organization (GLO).

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    More about this item

    Keywords

    R&D and growth; Sequential innovation; Public R&D; Patent laws;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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