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Intellectual Monopoly in Global Value Chains


  • Cédric Durand

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

  • William Milberg

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


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

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    More about this item


    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

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