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Northern and Southern Patent Novelty Requirements Harmonization, Growth and Trade

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  • Gilles Koléda

Abstract

I study the incentive that governments have to protect IPR in a trading world economy, focusing on the patent novelty requirement and its effect on growth an trade. I consider a world economy with ongoing innovation in two regions. The North is assumed to have a higher wage than the South, possibly a larger market for innovative products and a greater capacity for innovation. I introduce the heterogeneity of innovation size together with the obligation, given by Patent Office of each region, that the innovation size be higher than the patent novelty requirement. This patent characteristic stands to be a useable instrument to promote innovation and growth, and also a strategic trade policy instrument. I numerically determine the Nash equilibrium of the strategic game that results of the setting of patent’s novelty requirement by each regional authority. Then I study effects of an harmonization of the two patent systems, that is the setting of a common patent novelty requirement by a supra-regional organization.

Suggested Citation

  • Gilles Koléda, 2005. "Northern and Southern Patent Novelty Requirements Harmonization, Growth and Trade," DEGIT Conference Papers c010_025, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c010_025
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    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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