Abstract

PAGANO, Ugo  and  ROSSI, Maria Alessandra. The economy of knowledge, collapse and depression. Rev.econ.inst. [online]. 2017, vol.19, n.36, pp.57-74. ISSN 0124-5996.  https://doi.org/10.18601/01245996.v19n36.03.

This paper reviews a recent strand of research emphasizing how the present institutions of the knowledge economy may be jeopardizing the very promise of growth and prosperity that the increased use of knowledge is generally reported to bring about. The excessive privatization of knowledge generates self-reinforcing vicious and virtuous circles of accumulation of intellectual property and investment in human capital, which increase global inequality. The present institutions of the global economy entail also a reduction of global investment opportunities that is one of the causes of the present global depression. Absent spontaneous antidotes to these phenomena, economic and science policies should aim at redressing the balance between public and private knowledge. Because of the distortion of incentives, stemming from uncompensated knowledge externalities at the international level, these policies should necessarily be coordinated at global level.

Keywords : institutions of the economy; increase, prosperity; patenting, global effects; JEL: H41, L20, O34, O12].

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