INTELLECTUAL APPROPRIABILITY, PRODUCT DIFFERENTIATION, AND GROWTH

Content Provider	Scilit
Author	Cozzi, Guido Spinesi, Luca
Copyright Year	2005
Description	In the modern world, the main assets are immaterial ideas. Such assets are much more easily stolen than traditional factors such as physical capital and land. In this paper, we investigate the long-run growth effects of intellectual misappropriation at the R&D level. We adopt a generalized framework with both vertical and horizontal innovation. Inspired by recent evidence and by the patent law, we assume that only vertical innovations can be spied, because they are less easily patented than horizontal innovations. The main results are: (1) despite growing population, the fraction of labor engaged in spying activities tends to be constant; (2) in economies in which the R&D process is more vulnerable to ideas theft, growth rates are lower but product differentiation will be more intense; (3) intellectual misappropriation neutralizes the positive growth effect of R&D subsidies but not their positive level effects.
Related Links	https://www.cambridge.org/core/services/aop-cambridge-core/content/view/F5C9CFBA19F865162FDF9C4069A35D6D/S1365100506050115a.pdf/div-class-title-intellectual-appropriability-product-differentiation-and-growth-div.pdf
Ending Page	55
Page Count	17
Starting Page	39
ISSN	13651005
e-ISSN	14698056
DOI	10.1017/s1365100506050115
Journal	Macroeconomic Dynamics
Issue Number	1
Volume Number	10
Language	English
Publisher	Cambridge University Press (CUP)
Publisher Date	2006-02-01
Access Restriction	Open
Subject Keyword	Macroeconomic Dynamics Cybernetical Science Schumpeterian Growth Vertical Innovation Horizontal Innovation Industrial Espionage
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics