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

Ufuk Akcigit, Murat Celik and Jeremy Greenwood

PIER Working Paper Archive from Penn Institute for Economic Research, Department of Economics, University of Pennsylvania

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.

Keywords: Growth; Ideas; Innovation; Misallocation; Patents; Patent Agents; Research and Development; Search frictions (search for similar items in EconPapers)
JEL-codes: O31 O41 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2013-12-12
New Economics Papers: this item is included in nep-dge, nep-gro, nep-ino, nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Buy, Keep, or Sell: Economic Growth and the Market for Ideas (2016)
Working Paper: Buy, Keep or Sell: Economic Growth and the Market for Ideas (2015)
Working Paper: Buy, Keep or Sell: Economic Growth and the Market for Ideas (2013)
Working Paper: Buy, Keep or Sell: Economic Growth and the Market for Ideas (2013)
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