EconPapers    
Economics at your fingertips  
 

Upstream innovation protection: common law evolution and the dynamics of wage inequality

Guido Cozzi and Silvia Galli ()

MPRA Paper from University Library of Munich, Germany

Abstract: The incentives to conduct basic or applied research play a central role for economic growth, and this question has not been explored in much detail so far. How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? In the US, what does the common law system imply on the macroeconomic responses to institutional change? This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with skill acquisition. We consider three issues (a) the over-protection vs. the under-protection of intellectual property rights; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators; and (c) the implications of strengthening patent protection on wage inequality and growth. We show analytically and numerically how the jurisprudential changes in intellectual property rights witnessed in the US after 1980 can be related to the well-known changes in wage inequality and in education attainments. Basic research patents may have grown disproportionately due increasing jurisdictional protection, eventually compromising applied innovation, education, and growth. By simulations, we show that the dynamic general equilibrium interations may mislead the econometric assessment of the temporary vs persistent effects IPR policy.

Keywords: Basic and Applied R&D; Two-Stage Sequential Innovation; Skill Premium; Inequality and Education; Common Law. (search for similar items in EconPapers)
JEL-codes: K40 O31 O34 (search for similar items in EconPapers)
Date: 2011-03-22
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~, nep-lab and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31902/1/MPRA_paper_31902.pdf original version (application/pdf)

Related works:
Working Paper: Upstream Innovation Protection: Common Law Evolution and the Dynamics of Wage Inequality (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31902

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2023-11-11
Handle: RePEc:pra:mprapa:31902