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Optimal patent policy, research joint ventures, and growth

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  • Yang, Yibai

Abstract

The patent-and-growth studies have found that there may be welfare loss without optimizing both patent breadth and the division of profit in competitive research joint ventures (NJs). This paper examines the effects of patent policy on an R&D-based growth model where innovations are produced by cooperative research joint ventures (CJs). We show that CJs always generate a higher equilibrium growth rate than NJs, and the social optimum can be achieved with CJs in equilibrium when only patent breadth is chosen optimally.

Suggested Citation

  • Yang, Yibai, 2013. "Optimal patent policy, research joint ventures, and growth," Economics Letters, Elsevier, vol. 118(2), pages 381-384.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:2:p:381-384
    DOI: 10.1016/j.econlet.2012.12.001
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    References listed on IDEAS

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    1. Che, XiaoGang & Yang, Yibai, 2012. "Patent protection with a cooperative R&D option," Economics Letters, Elsevier, vol. 116(3), pages 469-471.
    2. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(1), pages 43-61.
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    4. Reinhilde Veugelers & Katrien Kesteloot, 1996. "Bargained shares in joint ventures among asymmetric partners: Is the matthew effect catalyzing?," Journal of Economics, Springer, vol. 64(1), pages 23-51, February.
    5. Ted O'Donoghue & Josef Zweimueller, 2004. "Patents in a Model of Endogenous Growth," Journal of Economic Growth, Springer, vol. 9(1), pages 81-123, March.
    6. Amalia Yiannaka, 2009. "When Less Is More: Optimal Patent Breadth under the Threat of Patent Validity Challenges," Southern Economic Journal, Southern Economic Association, vol. 75(4), pages 1067-1093, April.
    7. Richard Gilbert & Carl Shapiro, 1990. "Optimal Patent Length and Breadth," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 106-112, Spring.
    8. Chu, Angus C. & Furukawa, Yuichi, 2011. "On the optimal mix of patent instruments," Journal of Economic Dynamics and Control, Elsevier, vol. 35(11), pages 1964-1975.
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    Citations

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    Cited by:

    1. Klein, Michael A., 2025. "Patent policy, invention and innovation in the theory of Schumpeterian growth," Journal of Economic Dynamics and Control, Elsevier, vol. 176(C).
    2. Iwaisako, Tatsuro, 2023. "Optimal mix of R&D subsidy and patent protection in a heterogeneous-industry R&D-based growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 154(C).
    3. Furukawa, Yuichi, 2013. "The struggle to survive in the R&D sector: Implications for innovation and growth," Economics Letters, Elsevier, vol. 121(1), pages 26-29.
    4. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2023. "Class struggle in a Schumpeterian economy," China Economic Review, Elsevier, vol. 82(C).
    5. Chu, Angus C. & Shen, Guobing & Zhang, Xun, 2017. "Imports and Intellectual Property Rights on Innovation in China," MPRA Paper 81706, University Library of Munich, Germany.
    6. Angus C. Chu, 2022. "Patent policy and economic growth: A survey," Manchester School, University of Manchester, vol. 90(2), pages 237-254, March.
    7. Chu, Angus C. & Fan, Haichao & Shen, Guobing & Zhang, Xun, 2018. "Effects of international trade and intellectual property rights on innovation in China," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 110-121.
    8. Angus C. Chu, 2024. "Macroeconomic effects of intellectual property rights: an updated survey," Chapters, in: Walter G. Park (ed.), Handbook of Innovation and Intellectual Property Rights, chapter 2, pages 13-26, Edward Elgar Publishing.
    9. Yibai Yang, 2018. "On the Optimality of IPR Protection with Blocking Patents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 27, pages 205-230, January.

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    More about this item

    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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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