Free Culture, Human Capital and Economic Growth COMS 7800 Xiaoqun Zhang

Introduction The rapid development of digital technologies initiated a new round of technology revolution. Knowledge plays a crucial role in the economic development. Intellectual property rights (IPRS) and laws have greatly strengthened An opposite trend against intellectual property.

Introduction The core point of the struggle between IPRS and free culture resides in their functions in the knowledge production process. IPRS argues that IP promotes investments in knowledge creation and business innovation Free culture movement argues that IPRS controls creators to get access of the existing knowledge

Introduction Empirical analyses are more forceful in the policy making process than others based on intuitive, philosophical or even historical basis. The main rationale of economic analyses is that IPRS stimulates knowledge generation and promotes economic growth. If the scholars in the group of free culture use empirical, they will have more power in the reform of current IPRS statue.

Two important endogenous economic growth models Romer (1990) model: – The new design is the result of rational decision of investors, it is the driven force of economic growth. Lucas (1988) model: – Human capital accumulation is the driven force of economic growth.

The critiques of the two models IPRS denies free access to the existing knowledge. It contradict assumption of Romer’s model. Romer’s model emphasizes the technology progress embodied in manufacture equipments. Lucas’ model emphasizes the time input factor in the human capital production and overlooks other factors.

A new economic growth model based on free culture This model also takes human capital as the driven factor of economic growth. In this model, the IPRS system is fundamentally changed, and people get free access to the knowledge stock. The economy in this model is constituted by two sectors: final goods production sector and knowledge production sector.

A new economic growth model based on free culture

The solution of the balanced growth path

Conclusions and discussions

The fundamental assumption of this model is that people have free access to knowledge (the public domain, public goods). Another fundamental assumption is that the more knowledge products the labors get, the more human capital they have. This model has some shortcomings.

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