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INTELLECTUAL PROPERTY MEETS ECONOMIC GEOGRAPHY: GLOBALIZATION, INEQUALITY, AND INNOVATION STRATEGIES
Author(s) -
Spinesi Luca
Publication year - 2009
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2009.00496.x
Subject(s) - economics , globalization , per capita , inequality , competition (biology) , gross domestic product , consumption (sociology) , human capital , wage inequality , economic inequality , product (mathematics) , intellectual property , per capita income , production (economics) , wage , economic geography , labour economics , macroeconomics , economic growth , market economy , mathematical analysis , population , ecology , social science , demography , mathematics , geometry , sociology , computer science , biology , operating system
I perform a Schumpeterian analysis of a world economy in which heterogenous individuals and firms endogenously respond to stronger global competition by undertaking more education and by spending more in research and development (R&D). A more globalized economy is predicted to exacerbate wage inequality, but to spur human capital accumulation within each country. However, despite its positive level effects on consumption and output, globalization can reduce each country's per‐capita output growth rate. R&D specialization allows each country to positively invest in manufacturing, variety proliferation R&D, and product quality upgrading R&D. The existence of such an R&D specialization – jointly with domestic size – allows us to explain some different economic performance about inequality and R&D effort of developed regions, such as the US and the EU countries.