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On the optimal mix of patent instruments

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  • Chu, Angus C.
  • Furukawa, Yuichi

Abstract

A special characteristic of the patent system is that it features multiple patent-policy levers that can be employed by policymakers. In this study, we develop a quality-ladder model to analyze the optimal mix of patent instruments. Specifically, we consider (a) patent breadth and (b) the division of profit in research joint ventures. We analytically derive optimal patent policies and then calibrate the model to quantitatively evaluate the welfare gain from optimizing both patent instruments as compared to optimizing only one patent instrument. In summary, we find that the welfare gain can be substantial.

Suggested Citation

  • Chu, Angus C. & Furukawa, Yuichi, 2010. "On the optimal mix of patent instruments," MPRA Paper 24039, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24039
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    References listed on IDEAS

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    Citations

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    as


    Cited by:

    1. Chu, Angus C. & Leung, Charles K.Y. & Tang, Edward, 2012. "Intellectual property rights, technical progress and the volatility of economic growth," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 749-756.
    2. Angus C. Chu & Yuichi Furukawa & Lei Ji, 2016. "Patents, R&D subsidies, and endogenous market structure in a schumpeterian economy," Southern Economic Journal, Southern Economic Association, vol. 82(3), pages 809-825, January.
    3. Niwa, Sumiko, 2016. "Patent claims and economic growth," Economic Modelling, Elsevier, vol. 54(C), pages 377-381.
    4. repec:eee:reveco:v:51:y:2017:i:c:p:545-561 is not listed on IDEAS
    5. 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.
    6. Reinan Ribeiro & David Turchick, 2014. "Optimal patent breadth in a horizontal innovation growth model," Working Papers, Department of Economics 2014_15, University of São Paulo (FEA-USP).
    7. Sorek, Gilad, 2011. "Patents and quality growth in OLG economy," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 690-699.
    8. Tatsuro Iwaisako, 2017. "Welfare Effects of Patent Protection in a Semi-Endogenous Growth Model," Discussion Papers in Economics and Business 17-27, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    9. Yang, Yibai, 2013. "Optimal patent policy, research joint ventures, and growth," Economics Letters, Elsevier, vol. 118(2), pages 381-384.

    More about this item

    Keywords

    R&D; innovation; intellectual property rights;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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