Abstract
Several variables influence income distributions both for developed and developing countries. Based on the submissions of extant evaluations, policymakers have implemented several policy guidelines to curtail widening income gaps. Unfortunately, the wave of income disparity, particularly in developing countries, remained untamed. Surprisingly, scholars have rarely considered the perspective of innovation patenting receipts (IPRs) in income distribution inquiries. Thus, this investigation enriches the literature by evaluating how IPRs influenced income distributions in BRICS economies characterized by widening income gaps. Based on the estimates of the panel quantile autoregressive distributed lag model (PQARDL), several interesting outcomes sufficed: First, the enlisted variables converged to long-run equilibrium. Second, the study discovered that IPRs intensified income disparities across all quantiles of income distributions. Specifically, income disparities increased by 0.08 %, 0.88 %, and 0.09 % at the lower, middle, and upper-quantile, respectively owing to increasing IPRs. This outcome validated the skill-biased technological diffusion hypothesis. Among the control variables, geopolitical risks, open trade, and population contributed significantly to income asymmetry at various quantiles. Conversely, human capital development and, to some extent, financial development minified income disparities. We have outlined several policy options to ensure the attainment of SDG10.
•Intellectual property receipts contribute significantly to income inequality in BRICS economies.•Geopolitical risk factors influenced income disparities significantly.•Human capital development provided significant income inequality-reducing effects.•Financial development produced varying income-equalizing effects in BRICS economies.•Trade openness and population remained inimical for the attainment of SDG10 in BRICS economies.