Brunelleschi's bargain: intellectual property in digital space
The role of universities and technology commercialization in economic development
Tech generates new wealth in its region and universities are more important than ever in their role fostering regional growth.
Inside P&G’s innovation machine
Jeff Davis, Director of New Business Development at Proctor & Gamble, discusses P& G's new innovation strategy and their "connect and develop" model.
Measuring the social return to R&D
A large, empirical literature reports estimates of the rate of return to R&D ranging from 30 percent to over 100 percent, supporting the notion that there is too little private investment in research. This conclusion is challenged by the new growth theory. We derive analytically the relationship between the social rate of return to R&D and the coefficient estimates of the empirical literature. We show that these estimates represent a lower bound on the true social rate of return. Using a conservative estimate of the rate of return to R&D of about 30 percent, optimal R&D investment is at least ...
Why don't recessions encourage more R&D spending?
Economists sometimes argue that recessions promote activities that ultimately contribute to long-run growth. But evidence suggests research and development, one important source of economic growth, falls rather than rises during recessions, even for firms that do not appear to be credit constrained. The author discusses an alternative explanation for this pattern.
Cross-sectoral variation in firm-level idiosyncratic risk
In this paper we use data from the U.S. Census Bureau?s Longitudinal Research Database in order to assess the extent of the cross-sectoral variation in firm-level idiosyncratic risk and shed light on its determinants. We find that firms producing investment goods exhibit greater volatility in sales and TFP growth than firms producing consumption goods. Our data suggests that this may be the case because winner?takes?all competition is more common for the former than for the latter.
Are we running out of new ideas? a look at patents and R&D
Implications of intellectual property rights for dynamic gains from trade
A simple intellectual property rights (IPRs) framework is introduced into a dynamic quality ladder model of technological diffusion between innovating firms in one country and imitating firms in another country. The presence of technological spillovers and feedback effects between firms in the two countries demonstrates that, even when steady state growth increases, transition costs sometimes dominate steady state welfare gains. Most existing models of international IPRs find that high intellectual property enforcement in the imitating country leads to welfare gains in the innovating country ...
R&D spending and cyclical fluctuations: putting the \"technology\" in technology shocks
We examine the dynamic properties of an endogenous growth model with an explicit R&D sector in order to evaluate its ability to propagate temporary disturbances into persistent fluctuations in macroeconomic variables. We demonstrate that a large proportion of the variability and persistence of measured Solow residuals can be thought of as reflecting the endogenous accumulation and adaptation of technical knowledge rather than simply exogenous processes. By explicitly modeling R&D, we use a framework in which it is possible to explicitly consider the role of technology in "technology shocks."