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Upstream Innovation Protection: Common Law Evolution and the Dynamics of Wage Inequality

  • Guido Cozzi
  • Silvia Galli

What is the most innovation-enhancing level of patent protection for the new ideas generated within the framework of multi-stage sequential innovation? How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? What does the common law system imply on the macroeconomic responses to institutional change? We show how the jurisprudential changes in intellectual property rights witnessed in the US after 1980 can be related to the well-known increase in wage inequality and in education attainments. A Schumpeterian general equilibrium approach is followed.

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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2009_20.

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Date of creation: May 2009
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Handle: RePEc:gla:glaewp:2009_20
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