Effects of patent length on R&D: a quantitative DGE analysis
AbstractThis paper develops an R&D-growth model and calibrates the model to aggregate data of the US economy to quantify a structural relation ship between patent length, R&D and consumption. Under parameter values that match the empirical flow-profit depreciation rate of patents and other key features of the US economy, extending the patent length beyond 20 years leads to a negligible increase in R&D despite equilibrium R&D underinvestment. In contrast, shortening the patent length leads to a significant reduction in R&D and consumption. Finally, this paper also analytically derives and quantifies a dynamic distortionary effect of patent length on capital investment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Journal of Economics.
Volume (Year): 99 (2010)
Issue (Month): 2 (March)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=108909
Innovation-driven growth; Intellectual property rights; Patent length; R&D; O31; O34;
Other versions of this item:
- Chu, Angus C., 2009. "Effects of Patent Length on R&D: A Quantitative DGE Analysis," MPRA Paper 16918, University Library of Munich, Germany.
- Angus C. Chu, 2009. "Effects of Patent Length on R&D: A Quantitative DGE Analysis," IEAS Working Paper : academic research 09-A001, Institute of Economics, Academia Sinica, Taipei, Taiwan, revised Dec 2009.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- O'Donoghue, Edward & Zweimüller, Josef, 1998.
"Patents in a Model of Endogenous Growth,"
CEPR Discussion Papers
1951, C.E.P.R. Discussion Papers.
- Kwan, Yum K. & Lai, Edwin L. -C., 2003. "Intellectual property rights protection and endogenous economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 853-873, March.
- Charles I. Jones, 1999.
"Growth: With or Without Scale Effects?,"
American Economic Review,
American Economic Association, vol. 89(2), pages 139-144, May.
- Jaffe Adam B. & Lerner Josh, 2006.
"Innovation and Its Discontents,"
Capitalism and Society,
De Gruyter, vol. 1(3), pages 1-36, December.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Diego Comin, 2004.
"R&D: A Small Contribution to Productivity Growth,"
NBER Working Papers
10625, National Bureau of Economic Research, Inc.
- Charles I. Jones & John C. Williams, 1997.
"Measuring the social return to R&D,"
Finance and Economics Discussion Series
1997-12, Board of Governors of the Federal Reserve System (U.S.).
- Luis A. Rivera-Batiz & Paul M. Romer, 1990.
"Economic Integration and Endogenous Growth,"
NBER Working Papers
3528, National Bureau of Economic Research, Inc.
- Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
- Basu, Susanto & Fernald, John G, 1997.
"Returns to Scale in U.S. Production: Estimates and Implications,"
Journal of Political Economy,
University of Chicago Press, vol. 105(2), pages 249-83, April.
- Susanto Basu & John G. Fernald, 1996. "Returns to scale in U.S. production: estimates and implications," International Finance Discussion Papers 546, Board of Governors of the Federal Reserve System (U.S.).
- Rachel Ngai & Roberto Samaniego, 2011.
"Accounting for Research and Productivity Growth Across Industries,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 475-495, July.
- L. Rachel Ngai & Roberto M. Samaniego, 2009. "Accounting for Research and Productivity Growth Across Industries," CEP Discussion Papers dp0914, Centre for Economic Performance, LSE.
- Rachel Ngai & Roberto Samaniego, 2009. "Code files for "Accounting for Research and Productivity Growth Across Industries"," Computer Codes 09-126, Review of Economic Dynamics.
- James Bessen, 2006.
"The Value of U.S. Patents by Owner and Patent Characteristics,"
0603, Research on Innovation.
- Bessen, James, 2008. "The value of U.S. patents by owner and patent characteristics," Research Policy, Elsevier, vol. 37(5), pages 932-945, June.
- Daron Acemoglu, 2007. "Introduction to Modern Economic Growth," Levine's Bibliography 122247000000001721, UCLA Department of Economics.
- Futagami, Koichi & Iwaisako, Tatsuro, 2007. "Dynamic analysis of patent policy in an endogenous growth model," Journal of Economic Theory, Elsevier, vol. 132(1), pages 306-334, January.
- Judd, Kenneth L, 1985. "On the Performance of Patents," Econometrica, Econometric Society, vol. 53(3), pages 567-85, May.
- Nancy T. Gallini, 2002. "The Economics of Patents: Lessons from Recent U.S. Patent Reform," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 131-154, Spring.
- Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 495-525, May.
- Angus C. Chu, 2009.
"Macroeconomic Effects of Intellectual Property Rights: A Survey,"
IEAS Working Paper : academic research
09-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
- Chu, Angus C., 2009. "Macroeconomic Effects of Intellectual Property Rights: A Survey," MPRA Paper 17342, University Library of Munich, Germany.
- Chu, Angus C. & Leung, Charles Ka Yui & TANG, C. H. Edward, 2012.
"Intellectual property rights, technical progress and the volatility of economic growth,"
38132, University Library of Munich, Germany.
- Chu, Angus C. & Leung, Charles K.Y. & Tang, Edward, 2012. "Intellectual property rights, technical progress and the volatility of economic growth," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 749-756.
- Shiyuan Pan & Heng-fu Zou & Tailong Li, 2010. "Patent Protection, Technological Change and Wage Inequality," CEMA Working Papers 437, China Economics and Management Academy, Central University of Finance and Economics.
- Furukawa, Yuichi, 2010. "Intellectual property protection and innovation: an inverted-U relationship," Economics Letters, Elsevier, vol. 109(2), pages 99-101, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.