Innovation, imitation and policy inaction
Cerqueti, R., Quaranta, A.G. and Ventura, M. (2016). Innovation, imitation and policy inaction. Technological Forecasting and Social Change. 111, pp. 22-30.
|Authors||Cerqueti, R., Quaranta, A.G. and Ventura, M.|
The paper deals with the controversial issue of intellectual property rights. We deal with an optimization problem to model the optimal government's behavior in presence of dynamic uncertainty and intervention costs. More specifically, we search for the optimal strategies to be implemented by a policy maker to optimally balance the number of innovators and imitators. The problem is first tackled from a purely theoretical perspective and then by implementing extensive numerical simulations on the basis of empirical data. By the theoretical perspective, we obtain a rigorous proof that optimal strategies depend on the initial value of the number of imitators and not on the initial ratio between innovators and imitators, whereas the simulations provide us with intuitive insights from an economic point of view, along with a validation of the theoretical results. The results support the evidence that governments choose the possible widest bandwidth and minimize the size of interventions so as to curb intervention costs.
|Journal||Technological Forecasting and Social Change|
|Journal citation||111, pp. 22-30|
|Digital Object Identifier (DOI)||doi:10.1016/j.techfore.2016.06.001|
|Online||16 Jun 2016|
|Publication process dates|
|Accepted||02 Jun 2016|
|Deposited||09 Mar 2020|
|Accepted author manuscript|
CC BY-NC-ND 4.0
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