In a continuous time model with stochastic demand, two firms compete in R&D, with the lead patent affecting the probability of success of a second innovation competing in the same product market; the size and direction of this effect characterize the level of appropriability. From this...

Developing countries rely on technology created by developed countries. This paper demonstrates that such reliance increases wage inequality but leads to greater production in developing countries. I study a Brazilian innovation program that taxed the leasing of international technology to...

We consider the differential incentives of the North and the South to provide patent protection to innovating firms in the North. The two regions are assumed to have a different distribution of preferences over the range of exploitable technologies. Due to the scarcity of R&D resources, the two...