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Buy, Keep or Sell: Economic Growth and the Market for Ideas

Author

Listed:
  • Ufuk Akcigit

    (University of Chicago and NBER)

  • Murat Alp Celik

    (University of Pennsylvania)

  • Jeremy Greenwood

    (University of Pennsylvania and NBER)

Abstract

An endogenous growth model is developed where each period firms invest in researching and developing new ideas. An idea increases a firm's productivity. By how much depends on how central the idea is to a firm's activity. Ideas can be bought and sold on a market for patents. A firm can sell an idea that is not relevant to its business or buy one if it fails to innovate. The developed model is matched up with stylized facts about the market for patents in the U.S. The analysis attempts to gauge how efficiency in the patent market affects growth. In Econometrica (May 2016), v. 84, n. 3: 943-984.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ufuk Akcigit & Murat Alp Celik & Jeremy Greenwood, 2015. "Buy, Keep or Sell: Economic Growth and the Market for Ideas," RCER Working Papers 593, University of Rochester - Center for Economic Research (RCER).
  • Handle: RePEc:roc:rocher:593
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    File URL: http://rcer.econ.rochester.edu/RCERPAPERS/rcer_593.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Koh, Dongya; Santaeulàlia-Llopis, Raül; Zheng, Yu, 2015. "Labor share decline and intellectual property products capital," Economics Working Papers ECO2015/05, European University Institute.
    2. Nicolas Serrano-Velarde & Douglas Hanley & Ufuk Akcigit, 2012. "Back to Basics: Basic Research Spillovers, Innovation Policy and Growth," 2012 Meeting Papers 665, Society for Economic Dynamics.
    3. Greenwood, Jeremy & Han, Pengfei & Sanchez, Juan M., 2017. "Financing Ventures," Working Papers 2017-35, Federal Reserve Bank of St. Louis.
    4. Nicholas Bloom & Charles I. Jones & John Van Reenen & Michael Webb, 2017. "Are Ideas Getting Harder to Find?," NBER Working Papers 23782, National Bureau of Economic Research, Inc.
    5. repec:eee:macchp:v2-3 is not listed on IDEAS
    6. Douglas Hanley, 2015. "Innovation, Technological Interdependence, and Economic Growth," 2015 Meeting Papers 1491, Society for Economic Dynamics.
    7. Akcigit, Ufuk & Grigsby, John & Nicholas, Tom, 2017. "The Rise of American Ingenuity: Innovation and Inventors of the Golden Age," CEPR Discussion Papers 11755, C.E.P.R. Discussion Papers.
    8. Stefano Comino & Fabio M. Manenti & NIkolaus Thumm, 2017. "The Role of Patents in Information and Communication Technologies (ICTs). A survey of the Literature," "Marco Fanno" Working Papers 0212, Dipartimento di Scienze Economiche "Marco Fanno".
    9. Miroslav Gabrovski, 2017. "Coordination Frictions and Economic Growth," 2017 Papers pga928, Job Market Papers.
    10. Alon Brav & Wei Jiang & Song Ma & Xuan Tian, 2016. "How Does Hedge Fund Activism Reshape Corporate Innovation?," NBER Working Papers 22273, National Bureau of Economic Research, Inc.
    11. Koki Oikawa & Minoru Kitahara, "undated". "Technology Polarization," Working Papers e113, Tokyo Center for Economic Research.
    12. Carlos J. Serrano & Rosemarie Ziedonis, 2018. "How Redeployable are Patent Assets? Evidence from Failed Startups," NBER Working Papers 24526, National Bureau of Economic Research, Inc.
    13. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, Elsevier.
    14. Yael V. Hochberg & Carlos J. Serrano & Rosemarie H. Ziedonis, 2015. "Patent collateral, investor commitment and the market for venture lending," Working Papers 1519, Banco de España;Working Papers Homepage.
    15. Richard A. Hunt & Bret R. Fund, 2016. "Intergenerational Fairness and the Crowding Out Effects of Well-Intended Environmental Policies," Journal of Management Studies, Wiley Blackwell, vol. 53(5), pages 878-910, July.
    16. Koki Oikawa, "undated". "Inter-firm Technological Proximity and Knowledge Spillovers," Working Papers e114, Tokyo Center for Economic Research.

    More about this item

    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
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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