IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Patent Protecton and Strategic Delays in Technology Development: Implications for Econonmic Growth

Listed author(s):
  • Maggie Xiaoyang Chen


    (Institute for International Economic Policy, George Washington University)

  • Murat Iyigun


    (Department of Economics, University of Colorado/ Center for International Development, Harvard University/Instuitute for the Study of Labor (IZA))

We present an endogenous growth nmodel in which both the investment to develop a new technology - that upgrades the quality of machines - and entry of imitators are determined endogenously. According to the model, how soon the new-technology machines in launched after the patent is granted is influenced by two factors: returns to scale in technology development and "strategic delays." Strategic delays in technology development are most likely to occur when earlier dates of success enable imitators to enter an industry, i.e., when imitation is swift and relatively cheap and/or patent protection is relatively lengthy. We then explore the link between the optimal patent lengthand economic growth, and find that the equlibrium investment in technology development and thus the expected rate of technological process exhibit an nverted U-shape relationship with respect to the legal patent length.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by The George Washington University, Institute for International Economic Policy in its series Working Papers with number 2010-19.

in new window

Length: 37 pages
Date of creation: Sep 2010
Publication status: Forthcoming in Southern Economic Journal/ University of Colorado Working Paper No. 04-09
Handle: RePEc:gwi:wpaper:2010-19
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:gwi:wpaper:2010-19. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kyle Renner)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.