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Patent Protection in a Model of Economic Growth in Multiple Regions

Author

Listed:
  • Amitrajeet A. Batabyal

    (Rochester Institute of Technology)

  • Hamid Beladi

    (University of Texas at San Antonio)

Abstract

We study the effects of patent protection on economic growth in the ith region when this ith region is part of an aggregate economy of i = 1,…,N regions. The regulatory authority in the ith region attempts to curtail the monopoly power of patent holding input producers by requiring them to charge a price that is parametrically related to the unconstrained monopoly price. Our analysis generates three results. First, we show the manner in which the equilibrium growth rate of the ith region is related to the above mentioned parameter. Second, we demonstrate the impact that changes in the stringency of patent protection have on the ith region’s equilibrium growth rate. Finally, we explain why eliminating the monopoly distortion does not maximize social welfare in the ith region.

Suggested Citation

  • Amitrajeet A. Batabyal & Hamid Beladi, 2017. "Patent Protection in a Model of Economic Growth in Multiple Regions," Networks and Spatial Economics, Springer, vol. 17(1), pages 255-268, March.
    • Handle: RePEc:kap:netspa:v:17:y:2017:i:1:d:10.1007_s11067-016-9325-y
    DOI: 10.1007/s11067-016-9325-y
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    Cited by:

    1. Amitrajeet A. Batabyal & Karima Kourtit & Peter Nijkamp, 2019. "New Technological Knowledge, Rural and Urban Agriculture, and Steady State Economic Growth," Networks and Spatial Economics, Springer, vol. 19(3), pages 717-729, September.
    2. Dušan Marković, 2018. "RETRACTED ARTICLE: Appraisal of Science and Economic Factors on Total Number of Granted Patents," Networks and Spatial Economics, Springer, vol. 18(4), pages 1019-1026, December.

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    More about this item

    Keywords

    Dynamic; Human capital; Innovation; Multi-region economy; Patent protection;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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