Boetke goes to a RATIO conference and learns something. Wish I could have been there!
I am currently enrolled in both a Principle – Agent Problem course, and an Economic Development Course. How can Chicago meet Havard? Perhaps at GMU, but only if LvMI stays in Auburn. Romer’s work is relevant, and tries very hard not to make some mistakes. This, too is best done at GMU… Warsh and Easterly want to talk about this too, and I’ve got some reading to do!
The theory of the firm teaches us that high-risk ventures are most likely to be pursued by entrepreneurial individuals. However, knowledge based growth models frequently want to give large firms the ability to protect intellectual property through patents, assuming that the R & D departments of large corporations will have a comparative advantage in collecting the necessary numbers of individuals to create useful innovations.
Unfortunately, due to the low-risk nature of these large firms, and the initially granted privilege to patent, they tend towards a patent- hedging scheme which locks out the individual entrepreneurs. This seems to be a sub optimal conclusion.