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The B.E. Journal of Macroeconomics

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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

Abstract

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

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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.

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