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Intellectual Property Rights, Human Capital and the Incidence Of R&D Expenditures

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  • Daniel Lederman
  • Claudio Bravo Ortega

Abstract

The authors extend the model by Aghion and Howitt (1992) to highlight the role of intellectual-property-rights (IPRs) in the process of innovation and structural change. The model predicts, in contrast to existing literature, that lower risk-free discount rate increase imitation. The model suggests that the enforcement of IPRs and punishment of imitators has positive and differentiated effects on the level of R&D. It also predicts that human capital fosters the development of R&D activities. At the aggregate level, the model predicts that national R&D expenditures as a share of GDP will depend not only on the level of human capital and intellectual property rights, but that there are interactions between these two variables, and their effects on R&D might be follow unknown functional forms. The preponderance of the empirical evidence suggests that complex interactions between human capital and IPRs determine global patterns of R&D effort.

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Bibliographic Info

Paper provided by University of Chile, Department of Economics in its series Working Papers with number wp277.

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Date of creation: Mar 2008
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Handle: RePEc:udc:wpaper:wp277

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Web page: http://www.econ.uchile.cl/
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Keywords: Intellectual Property Rights; Development; Institutions.;

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Cited by:
  1. Arusha Cooray & Antonio Paradiso, 2012. "The level and growth effects in empirical growth models for the Nordic countries: A knowledge economy approach," CAMA Working Papers 2012-36, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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