Work

The paradox of government-funded innovation in weakly institutionalized environments

Year: 2024

Type: article

Abstract: Government intention to spur innovation can result in the proliferation of low-quality patents, which is especially pronounced in countries with a low level of government accountability. This study examines the paradoxical effects of government-funded innovation in weakly institutionalized environments. I offer a game-theoretic model, in which the government has a stake in technological development and invests in research and development, although this encourages the growth of low-quality patents. Using Russian patents data between 1998 and 2016, I illustrate this mechanism by demonstrating the causal impact of Russia's government policy, which resulted in a simultaneous increase in the number of patents and a decrease in the absolute number of high-quality patents in the patent pool. This study provides a theoretical background for evaluating the impact of political incentives for investing in the creation of new technologies in the technological development of countries.

Source: Journal of Innovation & Knowledge

DOI: 10.1016/j.jik.2024.100536

Author: Natalia Lamberova

Institution: The University of Texas at Dallas

Language: English

Topic: Intellectual Property and Patents

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,800