To foster innovation and growth should basic research be publicly or privately funded? This paper studies the impact of the gradual shift in the U.S. patent system towards the patentability and commercialization of the basic R&D undertaken by universities. We see this movement as making...

Starting in the early 1980s, the U.S. patent regime experienced major changes that allowed the patenting of numerous scientific findings lacking in current commercial applications. We assess the rationality of these changes in the legal and institutional environment for science and technology...

To foster innovation and growth should basic research be publicly or privately funded? This paper studies the impact of the gradual shift in the U.S. patent system towards the patentability and commercialization of the basic R&D undertaken by universities. We see this movement as making...

In this paper I consider two symmetric countries/regions which trade in final goods. In each country is active the manufacturing sector and both vertical and horizontal innovation conduced by individuals with heterogenous ability. I show that a more globalized world, as represented by lower...

It is well known that research and development (R&D) is an important engine for economic growth. Also, initial wealth inequality and subsequent economic growth are well known to be related. This paper links inequality and R&D-driven growth. It shows that in a class of economies where R&D is the...

This paper shows that standard Schumpeterian theory does not imply that the incumbent monopolist has too little incentive to carry out R&D aimed at displacing its own product. If the patent holder is rational as is any other R&D investor, she will know that in equilibrium her patent's...

This paper studies the long run growth implications of the presence of information acquisition and transmission costs. We assume that vertical innovation requires researchers to be informed on the current version of the product they want to improve upon; and we also assume that quasi-fixed...