Innovation, Inequality and Intellectual Property Rights

The existing literature on the sources and nature of productivity growth during the early industrialization stages of U.S. has identified the combination of intellectual property rights (IPRs) with a large middle class and broad participation in markets as explanations for the extraordinary level and growth of patenting. This paper considers whether these factors could play a role in the contemporaneous evolution of innovation in a broad cross section of countries today. Our results indicate that IPRs and the size of the middle class help explain patterns of resident, but not non-resident patenting. Overall, the evidence suggests that non-resident patenting patterns are driven more by exogenous factors and global integration, while 'home grown' innovation is more sensitive to internal structural and institutional factors.intellectual property rights, innovation, income inequality

Investments in Modernization, Innovation and Gains in Productivity: Evidence from Firms in the Global Paper Industry

This paper examines the impact of investments in modernization and innovation on productivity in a sample of firms in the global pulp and paper industry. This industry is important because it has traditionally accounted for significant amounts of employment and capital investment in North America and Europe. In contrast to much of the existing literature which focuses on the impact of R&D and patents on firms’ performance and productivity, we examine data on actual investment transactions in four main areas of operations: (i) mechanical, (ii) chemicals, (iii) monitoring devices and (iv) information technology. We find that firms which made decisions to implement a greater number of investment transactions in modernization achieved higher productivity, and these estimated quantitative effects are greater than the impact of standard innovation variables such as patents and R&D. Investment transactions in the information technology and digital monitoring devices imparted a particularly noticeable boost to productivity. These results are obtained after controlling for other firm-specific variables such as capital-intensity and mergers and acquisitions. Two broad messages emerge from our study. First, firms’ decisions to undertake investments in modernization and various forms of incremental innovations appear to be critical for achieving gains in productivity. While these may typically generate small gains on a year-to-year basis, they can compound to form meaningful differences in performance, productivity and competitive position across firms in the longer-run. Second, for some of the traditional industries like pulp and paper, R&D and patents seem to be particularly poor indicators of innovation and, more generally, how firms go about achieving gains in productivity. While this paper focuses on the pulp and paper industry, our broad framework and methodology is general and can be applied to understanding firms’ strategies related to enhancing performance and productivity in a variety of industries.Pulp and paper industry; investment; modernization; innovation; productivity; organizational behavior

A Note on Health Care Inflation

This study seeks to identify the key factors that influence the inflation rate of health care services. The time series analysis covers the period from 1960-1994. The results provide insights into both demand-side and supply-side determinants of this inflation rate. The health care inflation rate is found to be an increasing function of the over age 65 population, malpractice insurance premiums, and the frequency of high-tech testing, while being a decreasing function of the number of physicians per 100,000 population

Investments in Modernization, Innovation and Gains in Productivity: Evidence From Firms in the Global Paper Industry

This paper examines the impact of investments in modernization and innovation on productivity in a sample of firms in the global pulp and paper industry. Our motivation for this paper arose from plant-visits the authors made to pulp and paper mills in North America and Europe, focusing on issues related to productivity, innovation and competition. In contrast to much of the existing literature which focuses on the impact of R&D and patents on firms’ performance and productivity, we collected data and information on actual investment transactions in four main areas of operations: (i) mechanical, (ii) chemicals, (iii) monitoring devices and (iv) information technology. We find that firms which made decisions to implement a greater number of investment transactions in modernization achieved higher productivity, and these estimated quantitative effects are greater than the impact of standard innovation variables such as patents and R&D. Investment transactions in the information technology and digital monitoring devices imparted a particularly noticeable boost to productivity. These results are obtained after controlling for other firm-specific variables such as capital-intensity and mergers and acquisitions. Two broad messages emerge from our study. First, firms’ decisions to undertake investments in modernization and various forms of incremental innovations appear to be critical for achieving gains in productivity. While these may typically generate small gains on a year-to-year basis, they can compound to form meaningful differences in performance, productivity and competitive position across firms in the longer-run. Second, for some of the traditional industries like pulp and paper, R&D and patents seem to be particularly poor indicators of innovation and, more generally, how firms go about achieving gains in productivity. While this paper focuses on the pulp and paper industry, our broad framework and methodology is general and can be applied to understanding firms’ strategies related to enhancing performance and productivity in a variety of industries

Access to Higher Public Education and Locational Choices of Undocumented Migrants

Many states have experienced a large influx of undocumented migrants in recent years. This has created new demands on higher educational systems at the state level. Some states have passed legislation to restrict the access of undocumented migrants to higher public education whereas others provide access in various forms including in-state tuition. Our research examines a related issue that has not been researched much, namely, the impact of educational access on the location decisions of undocumented migrants in the US. Undocumented migrants appear to locate in states with high average median real per capita incomes. There is also evidence of clustering of undocumented migrants in states with large migrant networks. The effect of educational access on the percentage of undocumented workers in a state is mixed and small in most specifications, a finding perhaps indicative of a trade-off between competing priorities the choice of location

Access to Higher Public Education and Locational Choices of Undocumented Migrants

Many states have experienced a large influx of undocumented migrants in recent years. This has created new demands on higher educational systems at the state level. Some states have passed legislation to restrict the access of undocumented migrants to higher public education whereas others provide access in various forms including in-state tuition. Our research examines a related issue that has not been researched much, namely, the impact of educational access on the location decisions of undocumented migrants in the US. Undocumented migrants appear to locate in states with high average median real per capita incomes. There is also evidence of clustering of undocumented migrants in states with large migrant networks. The effect of educational access on the percentage of undocumented workers in a state is mixed and small in most specifications, a finding perhaps indicative of a trade-off between competing priorities the choice of location

A Note on Health Care Inflation

This study seeks to identify the key factors that influence the inflation rate of health care services. The time series analysis covers the period from 1960-1994. The results provide insights into both demand-side and supply-side determinants of this inflation rate. The health care inflation rate is found to be an increasing function of the over age 65 population, malpractice insurance premiums, and the frequency of high-tech testing, while being a decreasing function of the number of physicians per 100,000 population

Gross In-Migration and Public Policy in the U.S. during the Great Recession: An Exploratory Empirical Analysis, 2008-2009

For the period 2008-2009 of the “Great Recession,” the gross state-level in-migration rate was an increasing function of expected per capita personal income, state parks per capita, and warmer January temperatures. For the same study period, the gross in-migration rate was a decreasing function of the cost of living, the poverty rate, the average state income tax rate, per capita property taxation, and hazardous waste sites. All of the estimates yield results suggesting consistently, as in previous studies of earlier time periods, that migrants (consumer-voters) at the very minimum prefer lower state income tax burdens and lower property tax burdens. Consumer-voters’ evaluation of government services in determining their choice of location during the “Great Recession” appears to depend upon the type of government service. While consumer-voters on average appear to prefer states with greater public provision of state parks, our results do not indicate a strong preference for states with higher per pupil outlays on primary and secondary public education

Total State In-Migration and Public Policy in the United States: A Comparative Analysis of the Great recession and the Pre- and Post-Great Recession Years

This study adopts state-level data to empirically investigate the Tiebout hypothesis (as extended by Tullock) of “voting with one’s feet” for the period referred to in the U.S. as the “Great Recession” (2007-2009). As compared to previous studies, we use more recent data and provide estimates for three time periods: the “Great Recession” (from July 1, 2007 through June 30, 2009), the pre-Great Recession period (July 1, 2004 through June 30, 2006) and the post-Great Recession period (July 1, 2009 through June 30, 2011). This analysis also differs from most previous literature by including a separate cost of living variable and a variable measuring effective state personal income tax rates. After allowing for various economic factors and quality of life/climate variables, migrants (consumer-voters) over the 2007-2009 period appear to prefer states with lower effective state personal income tax rates and higher levels of “fiscal surplus,” defined in this study for each state as the total outlay per pupil on primary and secondary public education minus the per capita property tax level. The three empirical estimates all demonstrate that the Tiebout/Tullock hypothesis was operational not only during but also both before and after the Great Recession since for all three time periods migrants (consumer-voters) manifested a preference for lower effective state personal income tax rates and higher levels of fiscal surplus

Total State In-Migration and Public Policy in the United States: A Comparative Analysis of the Great recession and the Pre- and Post-Great Recession Years

This study adopts state-level data to empirically investigate the Tiebout hypothesis (as extended by Tullock) of “voting with one’s feet” for the period referred to in the U.S. as the “Great Recession” (2007-2009). As compared to previous studies, we use more recent data and provide estimates for three time periods: the “Great Recession” (from July 1, 2007 through June 30, 2009), the pre-Great Recession period (July 1, 2004 through June 30, 2006) and the post-Great Recession period (July 1, 2009 through June 30, 2011). This analysis also differs from most previous literature by including a separate cost of living variable and a variable measuring effective state personal income tax rates. After allowing for various economic factors and quality of life/climate variables, migrants (consumer-voters) over the 2007-2009 period appear to prefer states with lower effective state personal income tax rates and higher levels of “fiscal surplus,” defined in this study for each state as the total outlay per pupil on primary and secondary public education minus the per capita property tax level. The three empirical estimates all demonstrate that the Tiebout/Tullock hypothesis was operational not only during but also both before and after the Great Recession since for all three time periods migrants (consumer-voters) manifested a preference for lower effective state personal income tax rates and higher levels of fiscal surplus