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The Growth Effects of National Patent Policies

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Author Info

  • Elias Dinopoulos
  • Constantina Kottaridi

Abstract

We construct a two-country (innovative North and imitating South) model of product-cycle trade, fully endogenous Schumpeterian growth, and national patent policies. A move towards harmonization based on stronger Southern intellectual property rights (IPR) protection accelerates the long-run global rates of innovation and growth, reduces the North-South wage gap, and has an ambiguous effect on the rate of international technology transfer. Patent harmonization constitutes a suboptimal global-growth policy. However, if the global economy is governed by a common patent policy regime, then stronger global IPR protection: (a) increases the rates of global innovation and growth; (b) accelerates the rate of international technology transfer; and (c) has no impact on the North-South wage gap. Copyright � 2008 The Authors. Journal compilation � 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 16 (2008)
Issue (Month): 3 (08)
Pages: 499-515

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Handle: RePEc:bla:reviec:v:16:y:2008:i:3:p:499-515

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Cited by:
  1. Tatsuro Iwaisako & Hitoshi Tanaka & Koichi Futagami, 2009. "A Welfare Analysis of Global Patent Protection in a Model with Endogenous Innovation and Foreign Direct Investment," Discussion Papers in Economics and Business 09-24-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Mar 2011.
  2. Dinopoulos, Elias & Segerstrom, Paul, 2010. "Intellectual property rights, multinational firms and economic growth," Journal of Development Economics, Elsevier, vol. 92(1), pages 13-27, May.
  3. Helmut Wagner, 2012. "Is harmonization of legal rules an appropriate target? Lessons from the global financial crisis," European Journal of Law and Economics, Springer, vol. 33(3), pages 541-564, June.
  4. Borota, Teodora, 2010. "Innovation and Imitation in a Model of North-South TradeRecent evidence on world trade patterns reveals North-South specialization across," Working Paper Series 2010:6, Uppsala University, Department of Economics.

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