Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa / Nimark, Kristoffer / Wang, Pengfei

2 Issues per year

IMPACT FACTOR 2017: 0.378
5-year IMPACT FACTOR: 0.462

CiteScore 2017: 0.62

SCImago Journal Rank (SJR) 2017: 0.553
Source Normalized Impact per Paper (SNIP) 2017: 0.605

See all formats and pricing
More options …

Knowledge licensing in a model of R&D-driven endogenous growth

Vahagn JerbashianORCID iD: http://orcid.org/0000-0003-4189-2896
Published Online: 2016-04-26 | DOI: https://doi.org/10.1515/bejm-2015-0132


I model knowledge (patent) licensing and evaluate intellectual property regulation in an endogenous growth framework where the engine of growth is in-house R&D performed by high-tech firms. I show that high-tech firms innovate more and economic growth is higher when there is knowledge licensing, and when intellectual property regulation facilitates excludability of knowledge, than when knowledge is not excludable and there are knowledge spillovers among high-tech firms. However, the number of high-tech firms is lower, and welfare is not necessarily higher when there is knowledge licensing than when there are knowledge spillovers.

This article offers supplementary material which is provided at the end of the article.

Keywords: endogenous growth; in-house R&D; intellectual property regulation; knowledge licensing; welfare

JEL: O31; O34; L16; L50; O41


  • Aghion, P., and P. Howitt. 1992. “A Model of Growth through Creative Destruction.” Econometrica 60 (2): 323–351.CrossrefGoogle Scholar

  • Aghion, P., N. Bloom, R. Blundell, R. Griffith, and P. Howitt. 2005. “Competition and Innovation: An Inverted-U Relationship.” Quarterly Journal of Economics 120 (2): 701–728.Google Scholar

  • Anand, B. N., and T. Khanna. 2000. “The Structure of Licensing Contracts.” Journal of Industrial Economics 48 (1): 103–135.Google Scholar

  • Arora, A., and A. Fosfuri. 2003. “Licensing the Market for Technology.” Journal of Economic Behavior & Organization 52 (2): 277–295.CrossrefGoogle Scholar

  • Arora, A., and A. Gambardella. 2010. “The Market for Technology.” In Handbook of The Economics of Innovation, edited by B. H. Hall and N. Rosenberg, Vol. 1, 641–678. North-Holland: Elsevier B.V.Google Scholar

  • Blundell, R., R. Griffith, and J. M. van Reenen. 1999. “Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms.” Review of Economic Studies 66 (3): 529–554.CrossrefGoogle Scholar

  • Coase, R. H. 1972. “Durability and Monopoly.” Journal of Law and Economics 15 (1): 143–149.CrossrefGoogle Scholar

  • Faulí-Oller, R., and J. Sandonís. 2002. “Welfare Reducing Licensing.” Games and Economic Behavior 41 (2): 192–205.Web of ScienceCrossrefGoogle Scholar

  • Futagami, K., and T. Iwaisako. 2007. “Dynamic Analysis of Patent Policy in an Endogenous Growth Model.” Journal of Economic Theory 132 (1): 306–334.CrossrefGoogle Scholar

  • Gallini, N. T., and R. A. Winter. 1985. “Licensing in the Theory of Innovation.” RAND Journal of Economics 16 (2): 237–252.CrossrefGoogle Scholar

  • Grossman, G. M., and E. Helpman. 1995. “Technology and Trade.” In Handbook of International Economics, 1st ed. edited by G. M. Grossman and K. Rogoff, Volume 3. North-Holland: Elsevier B.V.Google Scholar

  • Jerbashian, V. 2014. “Knowledge Licensing in a Model of R&D-Driven Endogenous Growth.” UB Economics Working Papers, wp. 2014/304.Google Scholar

  • Jones, C. I. 1995. “R&D-Based Models of Economic Growth.” Journal of Political Economy 103 (4): 759–784.CrossrefGoogle Scholar

  • Jones, C. I. 1999. “Growth: With or Without Scale Effects?” American Economic Review 89 (2): 139–144.CrossrefGoogle Scholar

  • Jones, C. I. 2005. “Growth and Ideas.” In Handbook of Economic Growth, edited by P. Aghion and S. N. Durlauf, Vol. 1B, 1063–1111. North-Holland: Elsevier B.V.Google Scholar

  • Jones, C. I., and P. M. Romer. 2010. “The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital.” American Economic Journal: Macroeconomics 2 (1): 224–245.Web of ScienceGoogle Scholar

  • Judd, K. L. 1985. “On the Performance of Patents.” Econometrica 53 (3): 567–586.CrossrefGoogle Scholar

  • Katz, M. L., and C. Shapiro. 1985. “On the Licensing of Innovations.” RAND Journal of Economics 16 (4): 504–520.CrossrefGoogle Scholar

  • O’Donoghue, T., and J. Zweimüller. 2004. “Patents in a Model of Endogenous Growth.” Journal of Economic Growth 9 (1): 81–123.CrossrefGoogle Scholar

  • Peretto, P. F. 1996. “Sunk Costs, Market Structure, and Growth.” International Economic Review 37 (4): 895–923.CrossrefGoogle Scholar

  • Peretto, P. F. 1998a. “Technological Change and Population Growth.” Journal of Economic Growth 3 (4): 283–311.CrossrefGoogle Scholar

  • Peretto, P. F. 1998b. “Technological Change, Market Rivalry, and the Evolution of the Capitalist Engine of Growth.” Journal of Economic Growth 3 (1): 53–80.CrossrefGoogle Scholar

  • Peretto, P. F., and S. Smulders. 2002. “Technological Distance, Growth and Scale Effects.” Economic Journal 112 (481): 603–624.CrossrefGoogle Scholar

  • Rivera-Batiz, L. A., and P. M. Romer. 1991. “Economic Integration and Endogenous Growth.” Quarterly Journal of Economics 106 (2): 531–555.CrossrefGoogle Scholar

  • Romer, P. M. 1990. “Endogenous Technological Change.” Journal of Political Economy 98 (5): 71–102.CrossrefGoogle Scholar

  • Shapiro, C. 2001. “Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting.” In Innovation Policy and the Economy, Vol. 1, 119–150. Cambridge, MA: MIT Press.Google Scholar

  • Smulders, S., and T. van de Klundert. 1995. “Imperfect Competition, Concentration and Growth with Firm-Specific R&D.” European Economic Review 39 (1): 139–160.CrossrefGoogle Scholar

  • Tanaka, H., T. Iwaisako, and K. Futagami. 2007. “Dynamic Analysis of Innovation and International Transfer of Technology through Licensing.” Journal of International Economics 73 (1): 189–212.CrossrefGoogle Scholar

  • van de Klundert, T., and S. Smulders. 1997. “Growth, Competition and Welfare.” Scandinavian Journal of Economics 99 (1): 99–118.CrossrefGoogle Scholar

  • Vives, X. 2008. “Innovation and Competitive Pressure.” Journal of Industrial Economics 56 (3): 419–469.CrossrefWeb of ScienceGoogle Scholar

  • Yang, G., and K. E. Maskus. 2001. “Intellectual Property Rights, Licensing, and Innovation in an Endogenous Product-Cycle Model.” Journal of International Economics 1 (53): 169–187.Google Scholar

  • Young, A. 1998. “Growth without Scale Effects.” Journal of Political Economy 106 (1): 41–63.CrossrefGoogle Scholar

About the article

aCERGE-EI is a joint workplace of the Center for Economic Research and Graduate Education, Charles University in Prague, and the Economics Institute of Academy of Sciences of the Czech Republic.

Published Online: 2016-04-26

Published in Print: 2016-06-01

Citation Information: The B.E. Journal of Macroeconomics, Volume 16, Issue 2, Pages 555–579, ISSN (Online) 1935-1690, ISSN (Print) 2194-6116, DOI: https://doi.org/10.1515/bejm-2015-0132.

Export Citation

©2016 by De Gruyter.Get Permission

Supplementary Article Materials

Comments (0)

Please log in or register to comment.
Log in