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Trade, innovation and optimal patent protection

Author

Listed:
  • David Hemous
  • Simon Lepot
  • Thomas Sampson
  • Julian Scharer

Abstract

This paper provides a first comprehensive quantitative analysis of optimal patent policy in the global economy. We introduce a new framework, which combines trade and growth theory into a tractable tool for quantitative research. Our application delivers three main results. First, the potential gains from international cooperation over patent policies are large. Second, only a small share of these gains has been realized so far. And third, the WTO's TRIPS agreement has been counterproductive, slightly reducing welfare in the Global South and for the world. Overall, there is substantial scope for policy reform.

Suggested Citation

  • David Hemous & Simon Lepot & Thomas Sampson & Julian Scharer, 2023. "Trade, innovation and optimal patent protection," CEP Discussion Papers dp1958, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1958
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    References listed on IDEAS

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    1. repec:wip:wpaper:5 is not listed on IDEAS
    2. Travis J. Lybbert & Nikolas J. Zolas, 2012. "Getting Patents & Economic Data to Speak to Each Other: An ‘Algorithmic Links with Probabilities’ Approach for Joint Analyses of Patenting & Economic Activity," WIPO Economic Research Working Papers 05, World Intellectual Property Organization - Economics and Statistics Division, revised Oct 2012.
    3. Lybbert, Travis J. & Zolas, Nikolas J., 2014. "Getting patents and economic data to speak to each other: An ‘Algorithmic Links with Probabilities’ approach for joint analyses of patenting and economic activity," Research Policy, Elsevier, vol. 43(3), pages 530-542.
    4. Stefan C. Endres & Carl Sandrock & Walter W. Focke, 2018. "A simplicial homology algorithm for Lipschitz optimisation," Journal of Global Optimization, Springer, vol. 72(2), pages 181-217, October.
    5. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trade policy; innovation; growth; patents; TRIPS;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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