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Intellectual property rights protection and endogenous economic growth revisited

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  • Cysne, Rubens P.
  • Turchick, David

Abstract

We present an analytical solution to the lab-equipment R&D growth model with an exogenous rate of imitation and apply it to study the optimal level of intellectual property rights (IPR) protection. This has already been studied in Kwan and Lai (2003); however, a mistake in writing out the dynamics of the problem has contaminated that analysis. For the whole parameter space considered there, the conclusion is no longer to strengthen IPR protection partially, but fully (a result which we prove analytically for the logarithmic utility function). The usual tradeoff persists, though, for different choices of parameters.

Suggested Citation

  • Cysne, Rubens P. & Turchick, David, 2012. "Intellectual property rights protection and endogenous economic growth revisited," Journal of Economic Dynamics and Control, Elsevier, vol. 36(6), pages 851-861.
    • Handle: RePEc:eee:dyncon:v:36:y:2012:i:6:p:851-861
    DOI: 10.1016/j.jedc.2011.12.005
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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