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Campaign contributions and innovation in a fully-endogenous quality-ladder model

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  • Kenichiro Ikeshita

    (Kyushu University)

Abstract

This paper examines the effect of campaign contributions on patent policy, welfare, and innovation using a fully-endogenous quality-ladder model. Assuming two types of households, where one type holds patents and the other does not, we analyze political conflicts between the two groups. Our analysis shows campaign contributions increase the rate of innovation to an excessive level from the viewpoint of social welfare when the innovation-maximizing patent policy is sufficiently strong. This result is important because it implies that the rate of innovation distorted by campaign contributions can be too high from the viewpoint of social welfare.

Suggested Citation

  • Kenichiro Ikeshita, 2018. "Campaign contributions and innovation in a fully-endogenous quality-ladder model," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 139-157, April.
    • Handle: RePEc:spr:apjors:v:2:y:2018:i:1:d:10.1007_s41685-018-0080-6
    DOI: 10.1007/s41685-018-0080-6
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    References listed on IDEAS

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    Cited by:

    1. Moriki Hosoe, 2018. "Special issue (part II) on economic analysis of law, politics, and regions," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 79-82, April.

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    More about this item

    Keywords

    Campaign contribution; Patent protection; Innovation; Political conflict; Quality-ladder model;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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