Privatization of Knowledge: Did the U.S. Get It Right?
Series
MPRA
Type
discussion paper
Date Issued
2011-01
Author(s)
Abstract
To foster innovation and growth should basic research be publicly
or privately funded? This paper studies the impact of the gradual
shift in the U.S. patent system towards the patentability and commer-
cialization of the basic R&D undertaken by universities. We see this
movement as making universities becoming responsive to "market"
forces. Prior to 1980, universities undertook research using an exoge-
nous stock of researchers that were motivated by "curiosity." After
1980, universities patent their research and behave as private ?rms.
This move, in a context of two-stage inventions (basic and applied re-
search) has an a priori ambiguous e¤ect on innovation and welfare. We
build a Schumpeterian model and match it to the data to assess this
important turning point.
or privately funded? This paper studies the impact of the gradual
shift in the U.S. patent system towards the patentability and commer-
cialization of the basic R&D undertaken by universities. We see this
movement as making universities becoming responsive to "market"
forces. Prior to 1980, universities undertook research using an exoge-
nous stock of researchers that were motivated by "curiosity." After
1980, universities patent their research and behave as private ?rms.
This move, in a context of two-stage inventions (basic and applied re-
search) has an a priori ambiguous e¤ect on innovation and welfare. We
build a Schumpeterian model and match it to the data to assess this
important turning point.
Language
English
Keywords
R&D and Growth
Sequential Innovation
Basic Research
Patent Laws.
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
No
Publisher
University of Munich
Publisher place
Munich
Number
29710
Start page
49
Subject(s)
Eprints ID
221857
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