by a monopoly owned by the inventor. We show that philanthropy does not necessarily increase long-run growth and that it … may even reduce welfare. The reason is that it crowds out proprietary innovation which on net may reduce total innovation … in the long run. These effects would be reinforced if philanthropical innovation diverted people from other productive …

In this paper we study the welfare effect of a monopoly innovation. Unlike many partial equilibrium models carried out … conclude that, in general, the criticism against monopoly innovation based on its increased deadweight loss is less accurate … than previously postulated by many studies. -- Monopoly ; social welfare ; technical innovation ; general equilibrium …