Firms that “Only Produce Technologies” and Global Growth

Hasan Gürak

Chapter Chapter 6 in The Economic Value of Creative Mental Labor, 2024, pp 75-85 from Springer

Abstract: Abstract The holder of a “new” technology acquires patent ownership rights and enjoys monopoly power until its rivals develop similar products. Meanwhile, the technology owner can control the markets; however, it wishes and determine the price and/or the supplied quantity. The profit rate to be obtained using the monopoly power provided by the right of ownership is expected to be higher than the average rate in the market. That is because there is no competition. Yet, competition in terms of economic efficiency and consumer welfare is more useful than a monopoly for the humanity. Would it be possible to increase global competition while protecting the right to ownership of technological innovations through the patent laws? The answer is “yes.” If the technology-producing firms and the technology-using firms operate as “independent” separate profit units, both global competitionGlobal competition and consumer welfareConsumer welfare will increase. And most of the “technology market imperfectionsTechnology market imperfections” will disappear, ensuring the rapid improvement of global welfare and highly likely, reducing the gap in income levels among countries, hence reducing the incentives to immigrate to DCs on economic grounds.

Keywords: Creative mental labor; Skilled mental labor; Technological progress; Global competition; Monopoly (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-70110-8_6

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