Creator: Boldrin, Michele and Levine, David K. Series: Staff report (Federal Reserve Bank of Minneapolis. Research Department) Number: 339 Abstract:
In the modern theory of growth, monopoly plays a crucial role both as a cause and an effect of innovation. Innovative firms, it is argued, would have insufficient incentive to innovate should the prospect of monopoly power not be present. This theme of monopoly runs throughout the theory of growth, international trade, and industrial organization. We argue that monopoly is neither needed for, nor a necessary consequence of, innovation. In particular, intellectual property is not necessary for, and may hurt more than help, innovation and growth. We argue that, as a practical matter, it is more likely to hurt.
Stichwort: Intellectual Property, Growth, Innovation, Capital Accumulation, and Trade Fach: O34 - Intellectual Property and Intellectual Capital, L43 - Legal Monopolies and Regulation or Deregulation, O31 - Innovation and Invention: Processes and Incentives, O47 - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence, L11 - Production, Pricing, and Market Structure; Size Distribution of Firms, and F11 - Neoclassical Models of Trade