Preface ........................................................ xi
References ................................................. xvi
I The Nature of Innovation .................................... 1
1 The Nature and Importance of Innovation ...................... 3
1.1 Introduction ............................................ 3
1.2 What Is Innovation? ..................................... 4
1.3 The Microeconomic Effects of Innovation ................. 9
1.4 Interaction between Producers and Users of
Innovation ............................................. 16
1.5 Innovations and Market Failure ......................... 17
1.6 Restoring Incentives to Invent and Innovate ............ 23
1.7 Firms Competing through Innovation ..................... 28
1.8 Conclusion ............................................. 29
References .................................................. 30
2 The Nature and Role of Intellectual Property ................ 32
2.1 Introduction ........................................... 32
2.2 Why Are Intellectual Property Rights Awarded? .......... 32
2.3 Patents ................................................ 34
2.4 Trademarks ............................................. 39
2.5 Designs and Utility Models ............................. 43
2.6 Copyright .............................................. 45
2.7 Further Questions about IPRs ........................... 49
2.8 Conclusions ............................................ 53
References .................................................. 55
3 The Measurement of Innovation, Productivity, and Growth ..... 57
3.1 Introduction ........................................... 57
3.2 How Can Innovation Be Measured? ........................ 58
3.3 Illustrations of Innovation Statistics ................. 64
3.4 Productivity at the Firm, Industry, and Economy
Level .................................................. 70
3.5 Comparing Productivity and Growth across Countries ..... 74
3.6 Conclusion ............................................. 80
References .................................................. 82
II The National Innovation System .............................. 85
4 The National Innovation System .............................. 87
4.1 Introduction ........................................... 87
4.2 The National Innovation System ......................... 87
4.3 The Central Role of R&D ................................ 88
4.4 The Government-University Axis ......................... 92
4.5 The University-Business Axis ........................... 95
4.6 The Government-Business Axis .......................... 103
4.7 National Innovation Systems in Emerging Markets ....... 106
4.8 Conclusions ........................................... 110
References ................................................. 112
5 Innovative Firms and Markets ............................... 116
5.1 Introduction .......................................... 116
5.2 Entrepreneurship and New Firms ........................ 116
5.3 Innovation and Firms .................................. 119
5.4 Markets and Innovation ................................ 121
5.5 Empirical Evidence on the Returns to Innovation ....... 132
5.6 Evidence on Interactions between Competition and
Innovation ............................................ 140
5.7 Conclusions ........................................... 142
References ................................................. 145
6 Intellectual Property Rights and Firms ..................... 149
6.1 Introduction .......................................... 149
6.2 How Can Firms Benefit from IPRs? ...................... 150
6.3 Exploring the Returns to IPRs ......................... 152
6.4 Markets for IPRs ...................................... 157
6.5 Costs of Obtaining and Enforcing IPRs ................. 160
6.6 IPR Strategies ........................................ 162
6.7 Empirical Studies on the Value of IPRs ................ 164
6.8 Conclusions ........................................... 171
References ................................................. 173
7 Diffusion and Social Returns ............................... 177
7.1 Introduction .......................................... 177
7.2 Modeling the Rate of Adoption of an Innovation ........ 179
7.3 Statistical Evidence on Rates of Adoption ............. 186
7.4 Spillovers and Social Returns to Innovation ........... 190
7.5 Empirical Studies of Social Returns ................... 199
7.6 Spatial Dimensions of Spillovers ...................... 204
7.7 Conclusions ........................................... 205
References ................................................. 207
III The Macroeconomics of Innovation .......................... 211
8 Models of Economic Growth .................................. 213
8.1 Introduction .......................................... 213
8.2 The Neoclassical Growth Model ......................... 215
8.3 Endogenous Growth Models .............................. 225
8.4 Evolutionary and Other Models ......................... 237
8.5 Conclusions ........................................... 239
References ................................................. 241
9 Innovation and Globalization ............................... 243
9.1 What Is Globalization? ................................ 243
9.2 World Trade in Historical Perspective ................. 245
9.3 Theories of Trade and Growth .......................... 246
9.4 International Knowledge and Technology Flows:
Theory and Evidence ................................... 250
9.5 International Financial Flows ......................... 256
9.6 International Aspects of IPRs ......................... 260
9.7 Conclusions ........................................... 263
References ............................................ 266
10 Technology, Wages, and Jobs ................................ 268
10.1 Introduction .......................................... 268
10.2 Microeconomic Models of Innovation and Labor
Markets ............................................... 268
10.3 Innovation and Labor Markets: Evidence from Firms ..... 275
10.4 Macroeconomic and Trade Models of Innovation and
Labor Markets ......................................... 280
10.5 Conclusions ........................................... 289
References ................................................. 291
IV Economic Policy ........................................... 295
11 Microeconomic Policies to Promote Firm-Level Innovation .... 297
11.1 Introduction .......................................... 297
11.2 Is the Intellectual Property System Working? .......... 297
11.3 Incentive Systems for Encouraging Firm-Level R&D ...... 313
11.4 Other Innovation Policies ............................. 317
11.5 Conclusions ........................................... 323
References ................................................. 325
12 Macroeconomic Issues and Policy ............................ 329
12.1 Introduction .......................................... 329
12.2 Macroeconomic Evidence on IPRs and Economic Growth .... 330
12.3 Trade-Related Aspects of Intellectual Property
(TRIPS) ............................................... 334
12.4 Intellectual Property Rights, Exhaustion, and
Parallel Imports ...................................... 340
12.5 Piracy and Counterfeit ................................ 342
12.6 R&D in the Global Economy ............................. 344
12.7 International Migration of Skilled Labor .............. 346
12.8 Conclusions ........................................... 347
References ................................................. 349
Mathematical Appendix ......................................... 353
A.l Production Functions .................................. 353
A.2 Present Discounted Value .............................. 354
A.3 Derivatives ........................................... 355
A.4 Marginal Products and Diminishing Returns ............. 356
A.5 Accumulation Equations and Growth Rates ............... 357
A.6 Logarithms and Production Functions ................... 358
A.7 Differential Equations and a Catch-up Model ........... 358
A.8 Estimating Production Functions ....................... 359
References .................................................... 360
Index ......................................................... 361
|
