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Inventing or Spying? Implications for Growth

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  • Cozzi, Guido

Abstract

An engineer graduates if she derives the obvious implications of her instructor's hints. But the patent system rewards only the first to present nonobvious advancements--ideas similarly skilled engineers are not expected to invent. If a fraction of the newly invented hints spill over before the technological advances they entail are completed and granted legal protection, the R&D workers will find it convenient to spend some time searching for each other's hints instead of creating their own. A simple modification of the basic Schumpeterian model shows that the larger the skilled population, the larger the relative incentive to spy. Copyright 2001 by Kluwer Academic Publishers

Suggested Citation

  • Cozzi, Guido, 2001. "Inventing or Spying? Implications for Growth," Journal of Economic Growth, Springer, vol. 6(1), pages 55-77, March.
  • Handle: RePEc:kap:jecgro:v:6:y:2001:i:1:p:55-77
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    Cited by:

    1. Chu, Angus C. & Furukawa, Yuichi, 2011. "On the optimal mix of patent instruments," Journal of Economic Dynamics and Control, Elsevier, vol. 35(11), pages 1964-1975.
    2. Philippe Aghion & Peter Howitt & Susanne Prantl, 2015. "Patent rights, product market reforms, and innovation," Journal of Economic Growth, Springer, vol. 20(3), pages 223-262, September.
    3. Chu, Angus C. & Leung, Charles K.Y. & Tang, Edward, 2012. "Intellectual property rights, technical progress and the volatility of economic growth," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 749-756.
    4. Chu, Angus C. & Cozzi, Guido, 2011. "Cultural preference on fertility and the long-run growth effects of intellectual property rights," MPRA Paper 29059, University Library of Munich, Germany.
    5. 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.
    6. Keiichi Kishi, 2014. "A patentability requirement and industries targeted by R&D," Discussion Papers in Economics and Business 14-27-Rev., Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Oct 2014.
    7. Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2009. "Institutionalized Social Technologies Index: A Global Perspective," MPRA Paper 19746, University Library of Munich, Germany.
    8. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2014. "Stage-dependent intellectual property rights," Journal of Development Economics, Elsevier, vol. 106(C), pages 239-249.
    9. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2012. "Does intellectual monopoly stimulate or stifle innovation?," European Economic Review, Elsevier, vol. 56(4), pages 727-746.
    10. Angus C. Chu & Yuichi Furukawa, 2013. "Patentability and Knowledge Spillovers of Basic R&D," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 928-945, April.
    11. Guido Cozzi & Silvia Galli, 2014. "Sequential R&D and blocking patents in the dynamics of growth," Journal of Economic Growth, Springer, vol. 19(2), pages 183-219, June.
    12. Grossman, Herschel I., 2005. "Inventors and pirates: creative activity and intellectual property rights," European Journal of Political Economy, Elsevier, vol. 21(2), pages 269-285, June.
    13. Carmelo Pierpaolo Parello, 2009. "Information Gathering, Innovation and Growth," Working Papers 122, University of Rome La Sapienza, Department of Public Economics.
    14. Guido Cozzi, 2009. "Intellectual Property, Innovation, And Growth: Introduction To The Special Issue," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(s1), pages 383-389, September.
    15. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2011. "Innovating like China: a theory of stage-dependent intellectual property rights," MPRA Paper 30553, University Library of Munich, Germany.
    16. Spinesi, Luca, 2009. "Rent-seeking bureaucracies, inequality, and growth," Journal of Development Economics, Elsevier, vol. 90(2), pages 244-257, November.
    17. Fujii, Dmitri, 2009. "Who Wants To Be a Genius?," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(09), pages 7-54, segundo s.
    18. Guido Cozzi & Silvia Galli, 2009. "Science-Based R&D In Schumpeterian Growth," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(s1), pages 474-491, September.
    19. Philip Auerswald, 2010. "Entry and Schumpeterian profits," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 553-582, August.
    20. Spinesi Luca, 2011. "Probabilistic Heterogeneous Patent Protection and Innovation Incentives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-44, August.
    21. Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2012. "Does intellectual monopoly stimulate or stifle innovation?," European Economic Review, Elsevier, vol. 56(4), pages 727-746.
    22. Angus Chu & Guido Cozzi & Chih-Hsing Liao, 2013. "Endogenous fertility and human capital in a Schumpeterian growth model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 181-202, January.

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