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Endogenous growth and intellectual property rights: A north–south modeling proposal

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  • Azevedo, Mónica L.
  • Afonso, Óscar
  • Silva, Sandra T.

Abstract

In this paper, we develop a general equilibrium endogenous growth model that emphasizes the IPR enforcement effects on growth, in a scenario of north–south technological knowledge diffusion. The economy consists of three sectors, and firms are engaged in step-by-step innovation. In line with the literature, we introduce an IPR parameter that makes imitation more difficult. We find that, in steady state, the increases in IPR protection result in decreases in the growth rate. This result is in line with the literature, which argues that the enforcement of IPR does not always have a positive effect on economic growth. To sum up, we present some suggestions for future research which can help to clarify the relationship between IPR and endogenous growth.

Suggested Citation

  • Azevedo, Mónica L. & Afonso, Óscar & Silva, Sandra T., 2014. "Endogenous growth and intellectual property rights: A north–south modeling proposal," Economic Modelling, Elsevier, vol. 38(C), pages 112-120.
    • Handle: RePEc:eee:ecmode:v:38:y:2014:i:c:p:112-120
    DOI: 10.1016/j.econmod.2013.12.021
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    Cited by:

    1. Odilova, Shoirahon, 2016. "Patent protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 70842, University Library of Munich, Germany.
    2. Odilova, Shoirahon & Xiaomin, Gu, 2016. "IPR protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 71226, University Library of Munich, Germany.
    3. Afonso Óscar, 2019. "The role of IPRs on prices, wages and growth in a two country directed technical change model," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(1), pages 1-27, January.
    4. Niwa, Sumiko, 2016. "Patent claims and economic growth," Economic Modelling, Elsevier, vol. 54(C), pages 377-381.
    5. Jinqiu Li & Yuyou Zou & Mingqiu Li, 2022. "Synergetic evolution of the regional intellectual property management systems in China based on logistic model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3736-3750, December.
    6. Cristóbal Campoamor, Adolfo, 2021. "North-South trade liberalization and factor reallocations between manufacturing and R&D," Economic Modelling, Elsevier, vol. 96(C), pages 277-294.
    7. Collins, Tracy, 2015. "Imitation: A catalyst for innovation and endogenous growth," Economic Modelling, Elsevier, vol. 51(C), pages 299-307.
    8. Romero-Capa, José Luis & Martinez, Diana & Encalada, Juan & Ordoñez, Jose, 2022. "Incidencia de la innovación y calidad institucional sobre el crecimiento económico, un análisis con datos de panel para países clasificados por su nivel de ingresos," Revista Económica, Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, vol. 10(2), pages 82-95, Julio.

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    More about this item

    Keywords

    Intellectual Property Rights (IPR); Economic growth; North–south model;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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