IDEAS home Printed from https://ideas.repec.org/p/new/wpaper/1807.html
   My bibliography  Save this paper

Intellectual Monopoly in Global Value Chains

Author

Listed:
  • Cédric Durand

    () (Centre d'Économie Paris Nord, Université Paris 13)

  • William Milberg

    () (Department of Economics, New School for Social Research)

Abstract

More than two decades of scholarship on global value chains (GVCs) has reshaped our understanding of the global economy while tracking the international fragmentation of productive process and its socioeconomic consequences. In this paper we focus on the effort by lead firms to capture market power in the provision of and production of intangible assets. The analysis builds on Pagano’s (2014) notion of “intellectual monopoly”, where government protections of intellectual property have the effect of locking in the monopoly power from intangible asset creation. We extend it to the presence of scale economies and network externalities associated with the production of intangible assets.

Suggested Citation

  • Cédric Durand & William Milberg, 2018. "Intellectual Monopoly in Global Value Chains," Working Papers 1807, New School for Social Research, Department of Economics.
  • Handle: RePEc:new:wpaper:1807
    as

    Download full text from publisher

    File URL: http://www.economicpolicyresearch.org/econ/2018/NSSR_WP_072018.pdf
    File Function: First version, 2018
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:oup:indcch:v:26:y:2017:i:3:p:485-515. is not listed on IDEAS
    2. Dani Rodrik, 2018. "What Do Trade Agreements Really Do?," NBER Working Papers 24344, National Bureau of Economic Research, Inc.
    3. Ugo Pagano, 2014. "The crisis of intellectual monopoly capitalism," Cambridge Journal of Economics, Oxford University Press, vol. 38(6), pages 1409-1429.
    4. Lee, Dong Wook & Shin, Hyun-Han & Stulz, Rene M., 2016. "Why Does Capital No Longer Flow More to the Industries with the Best Growth Opportunities?," Working Paper Series 2016-15, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    5. repec:taf:rripxx:v:24:y:2017:i:1:p:1-29 is not listed on IDEAS
    6. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
    7. repec:mes:jeciss:v:51:y:2017:i:2:p:401-408 is not listed on IDEAS
    8. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    9. Andrew B. Bernard & Teresa C. Fort, 2015. "Factoryless Goods Producing Firms," American Economic Review, American Economic Association, vol. 105(5), pages 518-523, May.
    10. repec:aea:jecper:v:32:y:2018:i:2:p:73-90 is not listed on IDEAS
    11. Germán Gutiérrez & Thomas Philippon, 2017. "Investmentless Growth: An Empirical Investigation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 89-190.
    12. Ugo Pagano & Maria Alessandra Rossi, 2009. "The crash of the knowledge economy," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 665-683, July.
    13. Gruber, Joseph W. & Kamin, Steven B., 2015. "The Corporate Saving Glut in the Aftermath of the Global Financial Crisis," International Finance Discussion Papers 1150, Board of Governors of the Federal Reserve System (U.S.).
    14. repec:taf:jitecd:v:26:y:2017:i:7:p:865-883 is not listed on IDEAS
    15. Oxley, Joanne E., 1999. "Institutional environment and the mechanisms of governance: the impact of intellectual property protection on the structure of inter-firm alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 38(3), pages 283-309, March.
    16. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    17. Dong Lee & Han Shin & René M. Stulz, 2016. "Why Does Capital No Longer Flow More to the Industries with the Best Growth Opportunities?," NBER Working Papers 22924, National Bureau of Economic Research, Inc.
    18. repec:pal:jintbs:v:48:y:2017:i:7:d:10.1057_s41267-016-0061-9 is not listed on IDEAS
    19. Gary Gereffi, 2014. "Global value chains in a post-Washington Consensus world," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 9-37, February.
    20. Tang, Christopher & Tomlin, Brian, 2008. "The power of flexibility for mitigating supply chain risks," International Journal of Production Economics, Elsevier, vol. 116(1), pages 12-27, November.
    21. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    22. Kimberly A. Clausing, 2016. "The Effect of Profit Shifting on the Corporate Tax Base in the United States and Beyond," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(4), pages 905-934, December.
    23. Rodrik, Dani, 2018. "What Do Trade Agreements Really Do?," CEPR Discussion Papers 12703, C.E.P.R. Discussion Papers.
    24. Cédric Durand & Céline Baud, 2012. "Financialization, globalization and the making of profits by leading retailers," Post-Print halshs-00737045, HAL.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Global Value Chains; Intellectual Property Rights; Intangible Assets;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:new:wpaper:1807. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Setterfield). General contact details of provider: http://edirc.repec.org/data/denewus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.