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Economic Growth with Imperfect Protection of Intellectual Property Rights

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Author Info

  • Ryo Horii

    ()

  • Tatsuro Iwaisako

    ()

Abstract

The growth effects of intellectual property right (IPR) protection are examined in a quality-ladder model of endogenous growth. Stronger IPR protection, which reduces the probability of imitation, raises the reward for innovation. However, stronger protection reduces the number of competitive sectors, in which it is easier to innovate than in monopolistic sectors, thus concentrating researchers into fewer competitive sectors. As R&D projects take time until they are completed, concentration of R&D activity in a field raises the possibility of duplication of innovation, thereby hindering growth. In several settings, we show that imperfect, rather than perfect, protection maximizes growth.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s00712-006-0222-6
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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 90 (2007)
Issue (Month): 1 (January)
Pages: 45-85

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Handle: RePEc:kap:jeczfn:v:90:y:2007:i:1:p:45-85

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: intellectual property rights; endogenous growth; quality ladder; imitation; leapfrogging; duplication; O31; O34; O41;

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References

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