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Creative Class Competition and Innovation in the Absence of Patent Protection

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  • Batabyal, Amitrajeet

Abstract

Recently, Batabyal and Yoo (2018) have analyzed Schumpeterian competition in a region that is creative a la Richard Florida and where the creative class is made up of existing and candidate entrepreneurs. These researchers assume that an existing entrepreneur has a fully enforced patent on the inputs or machines that he has produced. We dispense with this assumption and study a scenario in which there is no patent protection for the representative existing entrepreneur (REE). This REE can undertake two possible types of innovation at the same cost. The first (second) type of innovation is general (specific) and hence can (cannot) be copied by the so called candidate entrepreneurs. In this setting, we perform two tasks. First, we show that although the REE will never undertake the general innovation, he may undertake the specific innovation. Second, we point out that even though the general innovation is not undertaken, the value to the creative region from the general innovation exceeds that from the specific innovation.

Suggested Citation

  • Batabyal, Amitrajeet, 2018. "Creative Class Competition and Innovation in the Absence of Patent Protection," MPRA Paper 89604, University Library of Munich, Germany, revised 17 Apr 2018.
    • Handle: RePEc:pra:mprapa:89604
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    References listed on IDEAS

    as
    1. Todd Gabe & Richard Florida & Charlotta Mellander, 2012. "The Creative Class and the crisis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(1), pages 37-53.
    2. Kristina Vaarst Andersen & Høgni Kalsø Hansen & Arne Isaksen & Mika Raunio, 2010. "Nordic City Regions in the Creative Class Debate—Putting the Creative Class Thesis to a Test," Industry and Innovation, Taylor & Francis Journals, vol. 17(2), pages 215-240.
    3. Amitrajeet Batabyal & Peter Nijkamp, 2013. "The creative class, its preferences, and unbalanced growth in an urban economy," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 189-209, January.
    4. Richard Florida, 2014. "The Creative Class and Economic Development," Economic Development Quarterly, , vol. 28(3), pages 196-205, August.
    5. Haifeng Qian, 2010. "Talent, creativity and regional economic performance: the case of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 133-156, August.
    6. Timo Tohmo, 2015. "The Creative Class Revisited: Does the Creative Class Affect the Birth Rate of High-tech Firms in Nordic Countries?," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 63-89.
    7. Shoshanah B. D. Goldberg-Miller & Eugene F. Fregetto, 2016. "Urban Creativity: An Entrepreneurial Focus," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 79-99, March.
    8. Thiess Buettner & Eckhard Janeba, 2016. "City competition for the creative class," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 413-451, November.
    9. Batabyal, Amitrajeet A. & Yoo, Seung Jick, 2018. "Schumpeterian creative class competition, innovation policy, and regional economic growth," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 86-97.
    10. Hans Westlund & Federica Calidoni, 2010. "The Creative Class, Social Capital And Regional Development In Japan," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 22(2‐3), pages 89-108, July.
    11. Amitrajeet Batabyal & Peter Nijkamp, 2014. "Innovation, Decentralization, and Planning in a Multi-Region Model of Schumpeterian Economic Growth," Networks and Spatial Economics, Springer, vol. 14(3), pages 605-628, December.
    12. Carlos Oliveira & Isabel Breda-Vázquez, 2012. "Creativity and Social Innovation: What Can Urban Policies Learn from Sectoral Experiences?," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(3), pages 522-538, May.
    13. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
    14. Batabyal, Amitrajeet A. & Beladi, Hamid, 2016. "The effects of probabilistic innovations on Schumpeterian economic growth in a creative region," Economic Modelling, Elsevier, vol. 53(C), pages 224-230.
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    More about this item

    Keywords

    Creative Class; General Innovation; Patent; Specific Innovation;
    All these keywords.

    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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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