// definition
Innovation rent
Income from a technological lead
Short definition
Income earned from a technological lead beyond current production costs. It can help cover research costs. Its size and persistence depend on competition, imitation, obsolescence and the rights that sustain the advantage. Expected rents in a model are assumptions, distinct from observed profits.
risk atlas
Knowledge map
Intuition
The persistence of an advantage and the income retained help finance further research.
Related analyses
Primary sources
- Rungcharoenkitkul, BIS WP 1381, October 2026Sections 2.4–2.5: innovation rents, research costs and the persistence of an advantage. A conditional theoretical framework.