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IPR for Public and Private Innovations, and Growth

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  • Luca, SPINESI

Abstract

The empirical analyses show that public and private R&D are strongly intertwined. On the one hand, the existence of large direct spillovers from public R&D to private industry has extensively proven. Yet, both a substitutability and complementarity relationship between private and public R&D investment has been found. From an institutional point of view, to stimulate the technology transfer from public R&D to private industry to U.S. adopted an uniform patent policy for public funded research, such as that guaranteed by the Bayh-Dole Act. This paper contributes to explain this empirical evidence. Within a neo-Schumpeterian endogenous growth model, it is shown that the intellectual appropriation share of new commercial valuable idea by private firms and the subsidy of private R&D costs are two equivalent ways to stimulate private R&D effort, and they affect in the same way the endogenous per capita output growth rate. The existence of a trade off between the per capita output growth rate and level has found. The main policy implication of these results consists into guarantee two different regimes of IPR for industrial and public innovations. Furthermore, it is shown that the large direct spillovers from public R&D to private industry allows to have better growth performance even if public R&D investment crowds out private innovative effort. A gain a trade off between the per capita output growth rate and level has found.

Suggested Citation

  • Luca, SPINESI, 2007. "IPR for Public and Private Innovations, and Growth," Discussion Papers (ECON - Département des Sciences Economiques) 2007015, Université catholique de Louvain, Département des Sciences Economiques.
  • Handle: RePEc:ctl:louvec:2007015
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2007-15.pdf
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    References listed on IDEAS

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    1. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
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    3. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
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    5. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
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    7. McMillan, G. Steven & Narin, Francis & Deeds, David L., 2000. "An analysis of the critical role of public science in innovation: the case of biotechnology," Research Policy, Elsevier, vol. 29(1), pages 1-8, January.
    8. Ted O'Donoghue & Josef Zweimueller, 2004. "Patents in a Model of Endogenous Growth," Journal of Economic Growth, Springer, vol. 9(1), pages 81-123, March.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Intellectual Property Rights; Private and Public R&D; Growth;

    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

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