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Probabilistic Heterogeneous Patent Protection and Innovation Incentives

Listed author(s):
  • Spinesi Luca

    ()

    (University of Rome 3)

Using a general equilibrium framework, this paper shows that imperfect and heterogeneous patent protection across industries affects the relative innovation incentives of firms and the skill premium. It is found that tighter patent enforcement in some industries allows a patent enforcement externality effect to emerge, whereby varieties with relatively softer patent protection have relatively stronger innovation incentives. The theoretical mechanisms hold for a wide range of the elasticity of substitution between varieties and also hold in a North-South framework when IPR harmonization is considered. A numerical simulation shows that merging both endogenous technological change and institutional aspects in the form of imperfect and heterogeneous IPR protection can contribute to explaining the different innovation and wage inequality performances of the U.S. and the EU regions.

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File URL: https://www.degruyter.com/view/j/bejeap.2011.11.issue-1/bejeap.2011.11.1.2790/bejeap.2011.11.1.2790.xml?format=INT
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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 11 (2011)
Issue (Month): 1 (August)
Pages: 1-44

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Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:45
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  1. Chiara Bentivogli & Patrizio Pagano, 1999. "Trade, Job Destruction and Job Creation in European Manufacturing," Open Economies Review, Springer, vol. 10(2), pages 165-184, May.
  2. Cozzi, Guido, 2001. "Inventing or Spying? Implications for Growth," Journal of Economic Growth, Springer, vol. 6(1), pages 55-77, March.
  3. Spinesi, Luca, 2009. "Rent-seeking bureaucracies, inequality, and growth," Journal of Development Economics, Elsevier, vol. 90(2), pages 244-257, November.
  4. Guido Cozzi & Giammario Impullitti, 2010. "Government Spending Composition, Technical Change, and Wage Inequality," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1325-1358, December.
  5. Cozzi, Guido, 2007. "Self-fulfilling prophecies in the quality ladders economy," Journal of Development Economics, Elsevier, vol. 84(1), pages 445-464, September.
  6. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
  7. Guido Cozzi & Silvia Galli, 2009. "Upstream Innovation Protection: Common Law Evolution and the Dynamics of Wage Inequality," Working Papers 2009_20, Business School - Economics, University of Glasgow.
  8. Paul Segerstrom & Elias Dinopoulos, 1999. "A Schumpeterian Model of Protection and Relative Wages," American Economic Review, American Economic Association, vol. 89(3), pages 450-472, June.
  9. Cozzi Guido, 2007. "The Arrow Effect under Competitive R&D," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-20, January.
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