Two strategies have largely been adopted by the US government to enhance the scientific academic contribution to industrial innovations and growth: financing academic research and granting academic ideas the same intellectual property rights (IPR) as industrial innovations. In distinguishing the stages of R&D within a dynamic general equilibrium model, it is found that academic government expenditures spur industrial R&D when academia and industry are almost equally efficient in their research capabilities and when firms have a high enough market size. Moreover, it is found that the softer IPR regime granted to academia increases the per capita growth rate of the economy.
Keywords: O31; O34; O38
Journal Article. 9431 words. Illustrated.
Subjects: Technological Change; Research and Development
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