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Innovation, Inequality and Intellectual Property Rights

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  • Weinhold, Diana
  • Nair-Reichert, Usha

Abstract

Summary We examine whether income inequality explains innovation across countries. The mechanism could be twofold: first, a large middle class could have an impact on institutions, including intellectual property rights (IPRs), which could in turn affect innovation. Second, evidence from US economic history suggests direct linkages between middle class share and innovation via supply and demand effects. Using IVE to address endogeneity, we find that middle class share explains patterns of resident patenting, while non-resident patenting is driven more by exogenous factors and global integration. Our results illustrate an additional channel through which income inequality can impact long run growth.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 5 (May)
Pages: 889-901

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:5:p:889-901

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: income inequality long run growth intellectual property rights;

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Citations

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Cited by:
  1. Hatipoglu, Ozan, 2008. "An Empirical Analysis of the Relationship Between Inequality and Innovation in a Schumpeterian Framework," MPRA Paper 7856, University Library of Munich, Germany.
  2. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
  3. William R. DiPietro, 2013. "Effects of Connectivity and Freedom on Innovation: An Empirical Test Using Different Data Sources," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 83-89, February.
  4. Ugur, Mehmet, 2012. "Market Power, Governance and Innovation: OECD Evidence," MPRA Paper 44141, University Library of Munich, Germany.

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