On the Persistence of Low Birthrate in Japan

We first show that quality of consumption is an important determinant of fertility and labor supply. Taking this observation into account and using a general equilibrium model with vertical quality differentiation and heterogeneous labor, we show how low fertility may persist. This occurs because product quality and skilled labor supply adjust, never realizing the change in labor productivity necessary to reverse declining fertility.

Microeconomics of Declining Birthrate: Review of Existing Literature

This paper explores the implications of declining population on the economy. A simple model with household childbearing decision with macro-micro feedback rule is introduced to argue that population cannot continue to decrease forever. Then we review the innovation and growth literature to understand the possible implications.

The 4th Science and Technology Basic Plan: A National Innovation System for New Challenges - Role of East Asia and Small & Medium Businesses

We give and over view of the Japanese 4th Science and Technology Basic Plan, 1 April 2011 - 31 march 2016, focusing on the four major challenges: recovery & revitalization from earthquake disasters, green innovation, life innovation, and science, technology and innovation system reform. Then we examine two important topics from other essential schemes in the Basic Plan: East Asia Joint Research Program (e-Asia JRP) and Small Business Innovation Research (SBIR). e-Asia JRP consists of multilateral collaboration in science and technology research and funding among participating countries. It will constitute a part of larger East Asian collaborative efforts in science, technology and innovation. SBIR is a scheme to help individuals and new firms develop and then commercialize innovative technology and products. SBIR consists of initial subsidies and then loans on very favorable terms. We also look at three examples of SBIR success: motor insulation ideal for hybrid and electric vehicles, cancer fighting cyclodextrin, and a key system for high security machines.

Clearing Houses and Patent Pools: Access to Genetic Patents

We consider four institutions to facilitate access to patent, three types of clearing houses and patent pools, and identify characteristics that determine their success. We first regroup the four into "exchanges" and "collective rights organizations" (CRO). Network effect of exchanges means that a critical mass of members must be guaranteed for success. Among the two CROs, royalty collection clearing houses and patent pools, the striking difference is their stability. Royalty clearing houses impose negative externality on non-members which makes it easy to attract new members and makes them very stable. On the contrary, patent pools generate positive externality to non-members which makes them unstable.

The Utility Standard and the Patentability of Intermediate Technology

We explore the consequences of the utility requirement on speed of innovation, welfare and public policy. A weak utility requirement means that an intermediate technology with no immediate application or commercial value is patentable. Using a model of two stage innovation with free entry and trade secrecy, we identify cases when patentability is beneficial to society. Although a firm may undertake basic research protected by trade secrecy, patentability is still desirable when spillover is high and innovation costs are high. However, patentability becomes less desirable as basic research costs decrease. We also show that high value of final technology by itself does not favor non-patentability and identify condition when it does.

It Takes a Village: Network Effect of Child-rearing

We explore an economy where number of children is endogenously determined and the cost of raising children is determined by the total number of children in the economy. We show that number of children will be too small compared to the social optimum and that the network effect may magnify the decline of "birthrate". Our analysis demonstrates that public policies to increase birthrate must take this into account when determining subsidies.

"The Utility Standard and the Patentability of Basic Research"

We explore the consequences of the utility requirement for patents on speed of innovation. Basic research output, that has no immediate appli-cation except for as a step to further research, may not be patentable be-cause it does not fulfill the utility requirement of patentability. Patentabil-ity of basic research differs from the questions analyzed in the past sequen-tial innovation framework, in that basic research has no market value in itself and patentability of the first-stage invention, rather than that of the second-stage invention, is an issue. There is never immediate gain for the innovator (or static loss to society) of obtaining a patent and the gain is purely from appropriating future success of the application technology. We extend Denicolo (2000) model to identify conditions in which allowing basic research to be patented is socially desirable.

Economics of Research Exemption

We provide an economic analysis of two types of research exemptions: (1) experimentation and research on the patented subject matter, and (2) academic (or non-commercial) research with the patented invention. We find that exemption for research on improving or inventing-around the subject matter makes good economic sense in the context of perpetual R&D competition, although it may not in the context of pioneer-follower innovation framework. The best approach might be to provide broad research exemption on the research on subject matter (more generally exemption for research using the knowledge disclosed in the invention that is useful for improving its subject matter), while strong protection is provided for a pioneering invention in the product market in terms of the breadth of claims. Exemption for experimentation on the subject matter for the purpose of verification of inventions also is sensible. On the other hand, we find that research exemption is a blunt tool for promoting academic research, with a negative effect on the development of research tool. In addition, it is not clear whether research exemption is necessary for efficient and coordinated price discrimination in favor of academic researches.research exemption, research tools, patents, sequential innovation

Compulsory Licensing of Technology and the Essential Facilities Doctrine

We consider compulsory licensing of intellectual property as a remedy for anticompetitive practices. We identify aspects of intellectual property that could warrant a different remedy from those developed for access to physical essential facilities. Based on the analysis, we present a characterisation of optimal compulsory licensing for a simple market. We find that royalty payments offer a greater range of choices to a regulator than fixed fees. Thus, even though the marginal cost of supplying access to intellectual property is zero, some unit charging is likely to be efficient.essential facilities, intellectual property, access price, royalty, investment