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on Innovation |
| By: | Marco Marinucci (Bank of Italy) |
| Abstract: | This paper provides theoretical background to the increasing R&D cooperation among firms and public research institutions. We find that R&D spillovers may impede cooperation among firms or research institutions even when the cost of forming a link is negligible. Further, the presence of heterogeneous players results in different concepts of network regularity but also increases the number of possible pairwise stable networks. Consequently, stronger concepts of stability are needed to study networks in which players are not homogeneous. |
| Keywords: | networks, innovation, R&D cooperation, spillovers |
| JEL: | C70 L14 O30 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_962_14&r=ino |
| By: | Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera |
| Abstract: | Focused on the efficiency of the Russian innovation-fostering policy, the research is based on an empirical analysis of how policy instruments impact firms’ behavior. The data is obtained from two surveys of more than 600 Russian industrial companies in 2011-2012. The analysis shows that tax incentives are more conducive to innovations with a longer payback period, whereas public funding is more likely to facilitate launching new innovative projects. At the same time, both kinds of innovation support tools are affected by crowding out private funds by public ones. Besides, innovation policy design and administration are not friendly to young companies. |
| Keywords: | innovation; firm behavior; tax incentives; public subsidies and grants; evaluation of government innovation policy |
| JEL: | L20 O31 O32 O38 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56750&r=ino |
| By: | MORIKAWA Masayuki |
| Abstract: | This paper, using Japanese firm-level data, presents findings about innovative activities in the service sector and the role of patents and trade secrets on innovation. According to the analysis, first, service firms have fewer product innovations than do manufacturing firms, but the productivity of innovative service firms is very high. Second, service firms have a low propensity for holding patents, but their holding of trade secrets is comparable to that of the manufacturing firms. Third, patents and trade secrets have positive relationships with product innovations, and the effects are quantitatively similar in magnitude in both the manufacturing and the service sectors. On the other hand, a positive relationship between trade secrets and process innovations is found only in the manufacturing sector. These results suggest a pivotal role of the law protecting trade secrets on innovation and productivity growth in the service sector. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14030&r=ino |
| By: | Haus, Axel (Dept. of Management and Microeconomics, Goethe University Frankfurt); Juranek, Steffen (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | We examine the role of non-practicing entities (NPEs), often called patent trolls, in patent litigation. We present a theoretical model that predicts that cases with NPE patentees resolve faster. We test this prediction using a hand-collected data set of US patent litigation cases. We find that NPEs challenge larger and more technology intensive firms, and use more valuable patents from technology areas that have a less fragmented ownership base compared to the control group. Controlling for these factors, we find that NPE cases are indeed resolved faster. NPEs help to increase the speed of diffusion of technology into the economy; therefore, increasing the effectiveness of the market for innovation. |
| Keywords: | Litigation; patents; patent trolls; technology diffusion |
| JEL: | K00 K41 O34 |
| Date: | 2014–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2014_024&r=ino |
| By: | Philippe Bertheau (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers (CNAM) : EA4603) |
| Abstract: | Research states that the success of a specific innovation cannot be predicted. As a consequence, the value of such an innovation can only be stated very late in the development process, or even in retrospect. Our empirical research shows that professionals directly engaged in the design process are able to perform an early and complete valuation, and that similar patterns emerge during this valuation process. |
| Keywords: | innovation, value, innovative design, business model, valuation |
| Date: | 2014–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01009026&r=ino |
| By: | Ernest Miguélez (GREThA - UMR CNRS 5113, Universite Montesquieu) |
| Abstract: | This paper documents the influence of diaspora networks of highly-skilled individuals – i.e., inventors – on international technological collaborations. Using gravity models, it studies the determinants of the internationalization of inventive activity between a group of industrialized countries and a sample of developing and emerging economies. The paper examines the influence exerted by skilled diasporas in fostering cross-country co-inventorship as well as R&D offshoring. The study finds a strong and robust relationship between inventor diasporas and different forms of international co-patenting. However, the effect decreases with the level of formality of the interactions. Interestingly, some of the most successful diasporas recently documented – namely, Chinese and Indian ones – do not govern the results. |
| Keywords: | inventors, diaspora networks, international collaborations, R&D offshoring, PCT patents |
| JEL: | C8 J61 O31 O33 R0 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:crm:wpaper:1425&r=ino |
| By: | Marc Baudry; Adrien Hervouet |
| Abstract: | This article deals with the impact of legislation in the seed sector on incentives for variety creation. Two categories of rules interact. The first category consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D investments by the private sector. The second category concerns commercial rules that are intended to correct a problem of adverse selection on the seed market. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders’ Rights (PBRs) or patents as IPRs. We simultaneously examine two kinds of commercial legislation: compulsory registration in a catalogue and minimum standards for commercialisation. Analytical results are completed by numerical simulations. The main result is that the combination between minimum standards and PBRs provides higher incentives for sequential innovation and may be preferred by a public regulator to maximise the expected and discounted total surplus when sunk investment costs are low or when they are medium and the probability of R&D success is sufficiently high. This solution differs from the combination of IPRs and commercialisation rules used in both the US and Europe. Otherwise, PBRs have to be replaced by patents, which yields a configuration close to that observed in the US. The catalogue commercialisation rule is seldom preferred to minimum standards, so that the combination of IPRs and commercialisation rules that prevails in Europe is not supported by our model. |
| Keywords: | Intellectual Property Rights, Plant Breeders’ Rights, Catalogue, Product differentiation, Asymmetric information, Biodiversity. |
| JEL: | D43 D82 K11 L13 Q12 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2014-32&r=ino |
| By: | Yasunori Ouchida (Department of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation, Hiroshima University) |
| Abstract: | This paper presents examination of environmental R&D of Cournot duopolists with end-of-pipe technology under a regulator’s precommitment to an emissions tax. Results show that, in the presence of technological spillover effect, the government invariably prefers environmental R&D cartelization to environmental R&D competition. In addition, this paper, in stark contrast to those presenting earlier studies, reveals that consumer surplus is not necessarily maximized by environmental research joint venture (ERJV) cartelization, although there invariably exist private incentives to firms for ERJV cartelization as well as social incentives for it. |
| Keywords: | R&D coordination; Environmental R&D; End-of-pipe technology; Precommit- ment ability; Emission tax |
| JEL: | O32 L13 Q55 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:4-3&r=ino |
| By: | Nguyen, Ha; Jaramillo, Patricio A. |
| Abstract: | This paper poses a question: do firms in developing countries not innovate because they are unwilling to? The question moves away from the conventional focus on the obstacles (such as the lack of access to finance) that hinder firms'innovation ability. The World Bank's Enterprise Survey is used first to estimate the return to firms'innovation across many developing countries, in terms of sales and sales per worker. Then the return to innovation is compared across countries with different levels of institutional quality. In countries with lower institutional quality (specifically, rule of law, regulatory quality, property and patent right protection), the return to firms'innovation is lower. This suggests that poor institutional environment lowers firms'return to innovation and hence discourages them from investing in researching and adopting new products. |
| Keywords: | Debt Markets,E-Business,Labor Policies,Microfinance,Innovation |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6918&r=ino |
| By: | Ruge-Leiva, Diego-Ivan |
| Abstract: | This paper investigates whether returns to domestic R&D and international R&D spillovers should be estimated without considering the heterogeneous impact of unobserved common shocks, as has been done by the literature in this area. Using a panel of 50 economies from 1970-2011, I find that when unobserved common shocks are disregarded, estimates of domestic R&D and foreign R&D weighted by bilateral imports might be biased and inconsistent. Once unobserved common factors are accounted for, by allowing for heterogeneous technology coefficients, significant estimates become more sizable, consistent and not seriously biased in most cases. However, these estimates might be capturing not only returns to domestic R&D and trade-related knowledge spillovers, but also unobserved common spillovers and other effects. This indicates that knowledge spillovers and effects of unknown form cannot be easily separated. Therefore, unobserved common shocks should not be ignored when estimating returns to domestic R&D and international R&D spillovers. |
| Keywords: | Productivity, Spillovers, Cross-Section Dependence, Unobserved Common Shocks. |
| JEL: | C23 O11 O30 O40 |
| Date: | 2014–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56718&r=ino |
| By: | Nicolas JULLIEN (LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - Institut Mines-Télécom - Télécom Bretagne - PRES Université Européenne de Bretagne (UEB), M@rsouin - Môle armoricain de recherche sur la société de l'information et les usages d'internet - Groupement d'intérêt scientifique); Julien Pénin (BETA - Bureau d'Economie Théorique et Appliquée - Université de Strasbourg : CNRS, UNIVERSITÉ DE LORRAINE) |
| Abstract: | L'innovation ouverte reste un concept très large, un peu fourre-tout, dont les frontières, les formes et les enjeux doivent encore d'être clarifiés. C'est précisément ce que nous nous proposons de faire dans cette contribution. Dans un premier temps, nous définissons le concept d'innovation ouverte et nous le confrontons aux théories existantes en économie et gestion de l'innovation. Cela nous amène notamment à distinguer les deux faces de l'innovation ouverte l'" inside-out et l'" outside-in " et à montrer que seule la première est réellement nouvelle en sciences de gestion. Cela nous permet également d'insister sur l'importance des droits de propriété intellectuels (DPI) et notamment du brevet dans l'essor et le succès des stratégies d'innovation ouverte. Dans un second temps nous présentons les différentes modalités de l'innovation ouverte. Nous insistons essentiellement sur la différence entre les formes traditionnelles d'innovation ouverte qui sont peu ouvertes et peu interactives (par exemple un accord bilatéral de collaboration de recherche entre une entreprise et une université) et des modalités qui ont émergé plus récemment et qui sont largement plus ouvertes et plus interactives (par exemple le crowdsourcing ou l'innovation avec des communautés open source). Nous appelons la première " innovation ouverte 1.0 " et la seconde " innovation ouverte 2.0 ", faisant ainsi référence à l'importance des TIC et notamment de l'Internet dit 2.0 pour favoriser la mise en place des modalités d'innovation ouverte 2.0. Enfin, dans un troisième temps nous analysons les enjeux stratégiques de l'innovation ouverte et nous évaluons la rationalité et les problématiques économiques soulevées par ce type de pratiques. |
| Keywords: | Innovation ouverte; Open source; Crowdsourcing; Inside-out; Outside-in |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01009630&r=ino |
| By: | Reinhilde Veugelers |
| Abstract: | Are R&D budgets being smartly used to address growth? How is the crisis affecting public Research & Development budgets across the EU? The crisis seems to have widened the gap between EU countries in public R&I expenditure. Even though the EU budget serves as mechanism to somewhat ease the growing public R&I divide in Europe - EU funds are relatively more significant for innovation-lagging countries with low national R&I budgets - it is crucial to assess whether the effectiveness of these R&I programmes. Understanding the degree to which public R&I budgets in the EU have been used â??smartlyâ?? during the crisis and whether the EU has made â??smartâ?? recommendations on public R&I in the European Semester requires an assessment of the long-term impact on growth. Smart consolidation featuring R&I investment needs to take a long-term perspective and to have sound evaluation frameworks in place to assess whether the potential for high growth returns from public R&I are indeed being realised. Evaluating the effectiveness of public R&I budgets should go beyond assessing short-term additionality impacts. Smart fiscal consolidation by EU member states should include assessments of the longer-term social rates of return. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:829&r=ino |
| By: | Abeer El-Sayed (Department of Economic Analysis and ERICES, University of Valencia, Spain); Santiago J. Rubio (Department of Economic Analysis and ERICES, University of Valencia, Spain) |
| Abstract: | This paper examines international cooperation on technological development as an alternative to international cooperation on GHG emission reductions. It is assumed that when countries cooperate they coordinate their investments so as to minimize the agreement costs of controlling emissions and that they also pool their R&D efforts so as to fully internalize the spillover effects of their investments in R&D. In order to analyze the scope of cooperation, an agreement formation game is solved in three stages. First, countries decide whether or not to sign the agreement. Then, in the second stage, signatories (playing together) and non-signatories (playing individually) select their investment in R&D. Finally, in the third stage, each country decides its level of emissions non-cooperatively. For linear environmental damages and quadratic investment costs, our findings show that the maximum participation in a R&D agreement consists of six countries and that participation decreases as the coalition information exchange decreases until a minimum participation consisting of three countries is reached. We also find that the grand coalition is stable if the countries sign an international research joint venture but in this case the effectiveness of the agreement is very low. |
| Keywords: | International Environmental Agreements, R&D Investment, Technology Spillovers, Coalition Information Exchange, Research Joint Ventures |
| JEL: | D74 F53 H41 Q54 Q55 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.41&r=ino |
| By: | Alessia LO TURCO (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Daniela MAGGIONI (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali) |
| Abstract: | We explore the role of firm and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms' product space evolution is characterised by strong cognitive path dependence which, however, is relaxed by firmheterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly related to the evolution of their industrial output, is mainly affected by firm internal product specific resources. On the contrary, product innovations inWestern advanced regions hinge relatively more on the availability of suitable local competencies. |
| Keywords: | Firm heterogeneity, Product Innovation |
| JEL: | D22 O12 O53 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:402&r=ino |
| By: | Michèle Debonneuil (Caisse des Dépôts et Consignations - sans); David Encaoua (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | Dans la phase des vagues d'innovations contemporaines, phase qu'on assimile à la troisième révolution industrielle ou encore à l'ère du numérique, les relations entre innovations, gains de productivité et emplois font l'objet de vives controverses, notamment aux Etats-Unis, pays phare en matière d'innovation. D'une part, la croissance des gains de productivité connaîtrait un certain ralentissement dans le secteur non manufacturier, conduisant à une croissance économique faible. D'autre part, les innovations contemporaines ne créeraient plus autant d'emplois qu'après la deuxième révolution industrielle. Plus précisément, la crise de l'emploi est à l'origine de la crise de croissance. La crise de l'emploi se manifeste elle-même par le fait que les technologies numériques sont à l'origine d'une bipolarisation des emplois selon qu'ils requièrent des tâches routinières ou non routinières, les premières étant substituables par des technologies numériques. Ces observations soulèvent évidemment une importante question : les innovations contemporaines ne serviraient-elles plus à mettre en marche la dynamique de la croissance et de l'emploi ? Ou bien ne s'agit-il que d'une phase transitoire, en quête de nouvelles perspectives ? Ce travail plaide en faveur du deuxième terme de l'alternative et il procède pour cela en deux temps. Premièrement, il examine les différents arguments qui sous tendent les inquiétudes et controverses sur les contreperformances des innovations contemporaines. Deuxièmement, il présente quelques interprétations et suggère les perspectives sociales ouvertes par l'évolution des technologies numériques qui constituent le coeur des innovations contemporaines. |
| Keywords: | productivité, croissance, emploi, innovation autonomisante, organisation sciale, quaternaire |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseose:halshs-00967255&r=ino |
| By: | Davide Antonioli (University of Ferrara); Simone Borghesi (University of Siena); Massimiliano Mazzanti (University of Ferrara) |
| Abstract: | The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win-win environmental – economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholders’ pressure and policy pressure. Little attention, however, has been devoted so far to the possible role of local spatial spillovers which are one of the factors affecting sector/geographical specialisations. We analyse a rich dataset that covers the innovative activities and economic performances of firms in the Emilia-Romagna region in Italy, an area rich of manufacturing districts. We analyse EIs drivers and effects on firms’ performances through a two-step procedure. First, we look at the relevance of spatial levers, namely whether the agglomeration of EIs induces EIs in a given firm. Second, we test whether EIs are significantly related to firms’ economic performances. As to the importance of spatial levers, the role of agglomeration turns out to be fairly local in nature: we find that spillovers are significantly inducing innovation within municipal boundaries. Regarding economic performances, firms' productivity is positively related to EI adoption; in particular, firms that jointly adopt EIs and organizational changes show a better economic performance. |
| Keywords: | Environmental Innovations, Firm Economic Performances, Local Spillovers, Manufacturing, Agglomeration. |
| JEL: | Q5 Q55 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.42&r=ino |
| By: | Bottomley, Sean |
| Abstract: | There are two competing accounts for explaining Britain's technological transformation during the Industrial Revolution. One sees it as the inevitable outcome of a largely exogenous increase in the supply of new ideas and ways of thinking. The other sees it as a demand side response to economic incentives – that in Britain, it paid to invent the technology of the Industrial Revolution. However, this second interpretation relies on the assumption that inventors were sufficiently responsive to new commercial opportunities. This paper tests this assumption, using a new dataset of Scottish and Irish patents. It finds that the propensity of inventors to extend patent protection into Scotland and/or Ireland was indeed closely correlated with the relative market opportunity of the patented invention. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tse:iastwp:28168&r=ino |
| By: | David Dranove; Craig Garthwaite; Manuel Hermosilla |
| Abstract: | Prior research has shown that exogenous shocks to the demand for medical products spur additional product development. These studies do not distinguish between breakthrough products and those that largely duplicate the performance of existing products. In this paper, we use a novel data set to explore the impact of the introduction of Medicare Part D on the development of new biotechnology products. We find that the law spurred development of products targeting illnesses that affect the elderly, but most of this effect is concentrated among products aimed at diseases that already have multiple existing treatments. Moreover, we find no increase in products targeting orphan disease or those receiving either fast track or priority review status from the FDA. This suggests that marginal changes in demand may have little effect on the development of products with large welfare benefits. |
| JEL: | H0 I1 I18 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20212&r=ino |
| By: | F. Quatraro; S. Usai |
| Abstract: | The paper investigates the impact of distance, contiguity and technological proximity on cross- regional knowledge flows, by comparing the evidence concerning co-inventorship, applicant-inventor relationships and citation flows. We find evidence of significant differences across these diverse kinds of knowledge flows for what concerns the role of distance, and the moderating role of contiguity and technological proximity. Moreover, we show that border effects may prove crucial in a twofold sense. On the one hand we show that contiguity between regions belonging to two different countries still plays a moderating role, although weaker as compared to that of within-country contiguity. On the other hand, regions sharing a frontier with a foreign country are more likely to exchange knowledge with this foreign country than other regions which are far away from the border. |
| Keywords: | regional competitiveness, Patents, knowledge flows, gravity, europe, Border regions |
| JEL: | R11 O33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201405&r=ino |
| By: | Takeshima, Hiroyuki |
| Abstract: | First, this paper shows that rice varietal development in Nigeria has been lagging behind that of other developing countries in Asia and Latin America, due partly to insufficient investment in domestic rice R&D. The paper then illustrates using a household model simulation that impacts of certain policies, such as the seed subsidy, may be greater (smaller) if they are applied to good (poor) varieties. The paper concludes by discussing key policy implications and future research needs. |
| Keywords: | rice, Research, Agricultural research, seed policies, seed sector, household model, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1343&r=ino |
| By: | Guillaume Dumas (LGCO - Laboratoire de Gouvernance et Contrôle des Organisations - IAE de Toulouse) |
| Abstract: | Cette recherche observe comment la comptabilisation et l'ajustement des dépenses de R&D sont utilisées comme modalités de gestion des résultats. Le recours à une variable médiatrice permet d'observer que les dirigeants activent prioritairement les dépenses de R&D avant de s'engager dans une gestion réelle des résultats par l'ajustement des dépenses de R&D. La recherche s'intéresse ensuite à l'influence de la norme comptable sur ces deux modalités de gestion des résultats. Les résultats indiquent que l'adoption des normes IFRS n'a pas neutralisé la capitalisation discrétionnaire des dépenses de R&D, mais que, à l'inverse, elle constitue une nouvelle modalité de gestion pour les entreprises qui inscrivaient en charges ces dépenses sous le référentiel PCG. Pour ces dernières entreprises, la gestion des résultats par la capitalisation leur permet de minimiser la gestion réelle des résultats. |
| Keywords: | R&D, gestion des résultats, médiation, norme comptable. |
| Date: | 2013–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01003935&r=ino |
| By: | Yuan Ding (CEIBS - Europe International Business School); Thomas Jeanjean (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - GROUPE HEC - CNRS : UMR2959); Hervé Stolowy (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - GROUPE HEC - CNRS : UMR2959) |
| Abstract: | Accounting numbers (and especially net income, equity or total assets) are based on conventions that are shaped by accounting standard setters. Elected choices result from a trade-off between the information needs of various stakeholders. This paper investigates how accounting choices meet the information needs of various stakeholders. Analyzing the R&D policy of Renault, one of the largest carmakers in Europe, over ten years (from 2002 to 2011), the paper illustrates how Renault modifies its R&D accounting policy from total expensing (a static convention) to capitalization (a dynamic convention), coping with the shift from State capitalism dominance to professional shareholder emphasis. Our findings are based on a content analysis of analysts' reactions to Renault accounting choices as well an extensive analysis of the documentation related to Renault (annual reports, presentations to analysts, conference call transcripts). Interestingly, while the R&D capitalization, promoted by the international accounting standard setter (the International Accounting Standards Board - IASB) in line with its advocacy of investors' interest as the principal recipient of accounting information, is supposed to help investors better understand the firm future cash flow, Renault's choice has been constantly challenged, even doubted by analysts. Our findings contradict the conventional wisdom in which shareholders should prefer dynamic conventions of accounting over static conventions while from its inception, the IASB purposely decided to favor investors over other stakeholders and promoted dynamic options of accounting choices. |
| Keywords: | Stakeholder, R&D capitalization, Renault, accounting |
| Date: | 2013–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01002936&r=ino |
| By: | Saini, Swati; Mehra, Meeta K |
| Abstract: | This paper examines the impact of strengthening Intellectual Property Rights (IPRs) on within-country income inequality for a cross-section of 65 developed and developing countries for the time period 1995-2009.Our results indicate that strengthening of IPRs has led to an increase in income inequality in WTO-member developing countries after they started modifying their national IPR regimes to conform to the TRIPs requirements. IPRs tend to raise income inequality by generating a more skewed distribution of wages. Stronger IPRs increase the demand for skilled labor force as it raises the return on R&D activities. This causes a relative increase in skilled labor wages, creating a wage bias in favor of skilled labor against unskilled labor, thus aggravating income inequality within a developing country. Moreover, the effect on inequality is more pronounced for developing countries that are experiencing higher per capita GDP growth rates. As for the developed countries included in the sample, the analysis seems to suggest that IPRs have led to a decline in income inequality over the study period. |
| Keywords: | Developing countries, Globalization, Inequality, Intellectual Property Rights |
| JEL: | O34 |
| Date: | 2014–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56710&r=ino |