Knowledge Licensing in a Model of R&D-Driven Endogenous Growth
UB Economics Working Papers E14/304
78 Pages Posted: 6 Mar 2014
Date Written: January 26, 2014
In this paper I present an endogenous growth model where the engine of growth is in-house R&D performed by high-tech firms. I model knowledge (patent) licensing among high-tech firms. I show that if there is knowledge licensing, high-tech firms innovate more and economic growth is higher than in cases when there are knowledge spillovers or there is no exchange of knowledge among high-tech firms. However, in case when there is knowledge licensing the number of high-tech firms is lower than in cases when there are knowledge spillovers or there is no exchange of knowledge.
Keywords: Knowledge Licensing, Intra-firm R&D, Competitive Pressure, Endogenous Growth
JEL Classification: O30, O41, L16
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