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When Does Patent Protection Stimulate Innovation?

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  • Andreas Panagopoulos

Abstract

Patents act as an incentive to innovate. However, as this paper argues, patents can lead the patent holder to rest on his laurels and at the same time discourage some innovators from innovating, reducing knowledge spillovers. The combined result of the above suggests an inverse U relationship between patent protection and output growth.

Suggested Citation

  • Andreas Panagopoulos, 2004. "When Does Patent Protection Stimulate Innovation?," Bristol Economics Discussion Papers 04/565, School of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:uobdis:04/565
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    Cited by:

    1. Andreas Panagopoulos, 2004. "Patent Protection As A Stimulant for Risky Innovation. Could TRIPS be Counterproductive?," Bristol Economics Discussion Papers 04/566, School of Economics, University of Bristol, UK.

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    More about this item

    Keywords

    Intellectual property; patent races; growth.;
    All these keywords.

    JEL classification:

    • K0 - Law and Economics - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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