lets start with the whole human capital gambit
he picked up at chicago

why not just admit this
is the ultimate pay off
in confusion
calling so many different things capital
leads to a geep hiring out himself
and collecting rent on himself
'scuse me rent and interest
on self ...
investment --another word with hydra like uses--

at any rate
his model incorporates literally
an r and d sector
that produces
novel designs
out of a reservoir of ... existing designs
by means of humans posessed
of specific durable skills
---their skills capitalized no doubt
by means of rational
gain max calcs ---

the novel design needless to say
must pay their way plus
and this requires
the bar drop
on free universal reproduction
of the designs

incentives my children incentrives

as honest abe the railroad lawyer
once said
"we must add
the fires of interest
to the spark of creation "
or words equally high flown

so now we got the why fer of IP

BUT LETS DROP BACK HERE

needless to say these hu-caps
are the key to everything
grand progressive and uplifting

combine this with
uncle gary's
beckerville folly
and you get
the no development
without a culture of intensive hu cap cultivation
alibi for the left behind nations of the earth

add increasing returns to the size of this pool
of hu caps in the r and d sector
add back in
this hu-cap scale effect
to intellectual property rights
and you get
an Rx for trans nat corporations
as optimal barers of global civilization
on a categorical imperative basis

what a vision

market size (smith) is sublated

look out india and china and all black africa too
here comes your salvation

pan oceanic limited liability
unlimited ip monopoly inc

taking these new designs
to the ends of the earth
sowing seeds anywhere and everywhere

...optmal optimal all is optimal

Posted by: paine | Link to comment | February 14, 2008 at 11:44 AM

paine says...
formally its ho hum
suped up dixit stiglitz
ie imperfect comp
with its stable "rents "

voila
schumpeter has been formalized

but the fly in the ointment

an r and d outfit
ain't a resaurant

universal discovery
at the margin of production is free

reputation ---good eats ---
requires diffusion
slowed by potential market size
and household's frequency of shopping sampling what have you

but a design
can be grab by the competition
and replicated
fast
in a few only firm setting

too much detail...

point
romer's
r and d production function
might as well have
trans nat inc stamped at birth
on its underbelly