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Patents and Research Tools in a Schumpeterian Growth Model with Sequential Innovation

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  • Silvia Galli

    (University of Rome "La Sapienza")

Abstract

In the standard quality-ladder growth models, R&D firms undertake independent innovation processes to discover ideas whose value immediately transfers into tradeable applications. Here the standard multisector neo-Schumpeterian growth theory is extended by decomposing product innovation into a two-stage uncertain research activity. I compare the general equilibrium innovative performance of an economy where early-stages scientific results are patentable with the general equilibrium innovative performance with unpatentable basic ideas freely disseminated by public research institutions (universities). I show that the widely documented increasing complexity experienced in applied R&D magnifies the public basic R&D inefficiencies and suggests the patentability of research tools.

Suggested Citation

  • Silvia Galli, 2006. "Patents and Research Tools in a Schumpeterian Growth Model with Sequential Innovation," Rivista di Politica Economica, SIPI Spa, vol. 96(6), pages 63-104, November-.
    • Handle: RePEc:rpo:ripoec:v:96:y:2006:i:6:p:63-104
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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