This paper presents a two-countries dynamic model of Schumpeterian growth with two innovative R&D sectors in each country: a vertical R&D sector that improves the quality of existing differentiated products and a horizontal R&D sector that creates new differentiated products. The two countries...

Do policies that alter the allocation of human capital across individuals affect the innovation capacity of an economy? To answer this question I extend Romer’s growth model to allow for individual heterogeneity. I find that the value of an invention rises with equality. If skills and talents...

Abstract I study the incentive that governments have to protect IPR in a trading world economy, focusing on the patent novelty requirement and its effect on growth an trade. I consider a world economy with ongoing innovation in two regions. The North is assumed to have a higher wage than the...

The paper develops a two-country dynamic general-equilibrium model of growth without scale effects to explore the effects of globalization on long-run growth and wages. Higher quality products are endogenously discovered through stochastic and sequential global innovation contests in which...

We study the incentive that governments have to protect IPR in a trading world economy, focusing on the patent novelty requirement and its effect on growth and trade. We consider a world economy with ongoing innovation in two regions. The North is assumed to have a higher wage than the South and...

This study examines optimal public policy in a product cycle model where R&D firms innovate and imitate and households face non-diversifiable risk. The government controls product cycles by two policy instruments: patent length, i.e. the expected time an innovation is imitated, and patent width,...