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Effects of patent protection on economic growth and welfare in a two-R&D-sector economy

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  • Saito, Yuki

Abstract

This paper examines the effects of patent protection in a growth model, where final goods firms and intermediate goods firms engage in R&D. The results show that: (i) strengthening patent protection is likely to increase the technology level of the final goods sector relative to the intermediate goods sector in most cases; (ii) if R&D productivity in the final goods sector is lower than that in the intermediate goods sector, the relationship between patent protection and economic growth is an inverted-U shape; and (iii) an increase in R&D productivity in the intermediate goods sector can reduce the welfare-maximizing level of patent protection.

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  • Saito, Yuki, 2017. "Effects of patent protection on economic growth and welfare in a two-R&D-sector economy," Economic Modelling, Elsevier, vol. 62(C), pages 124-129.
    • Handle: RePEc:eee:ecmode:v:62:y:2017:i:c:p:124-129
    DOI: 10.1016/j.econmod.2017.01.015
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    Cited by:

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    2. Angus C. Chu, 2024. "Macroeconomic effects of intellectual property rights: an updated survey," Chapters, in: Walter G. Park (ed.), Handbook of Innovation and Intellectual Property Rights, chapter 2, pages 13-26, Edward Elgar Publishing.
    3. Nguyen, Canh Phuc & Doytch, Nadia, 2022. "The impact of ICT patents on economic growth: An international evidence," Telecommunications Policy, Elsevier, vol. 46(5).
    4. Lu, You-Xun, 2022. "Interactive effects of monetary policy and patent protection: The role of endogenous innovation size," Economic Modelling, Elsevier, vol. 113(C).
    5. Abdin, Joynal & Sharma, Abhijit & Trivedi, Rohit & Wang, Chengang, 2024. "Financing constraints, intellectual property rights protection and incremental innovation: Evidence from transition economy firms," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    6. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2023. "Class struggle in a Schumpeterian economy," China Economic Review, Elsevier, vol. 82(C).
    7. Angus C. Chu, 2022. "Patent policy and economic growth: A survey," Manchester School, University of Manchester, vol. 90(2), pages 237-254, March.
    8. Tsuboi, Mizuki, 2020. "Growth, R&D, and uncertainty," Economic Modelling, Elsevier, vol. 87(C), pages 394-400.
    9. Ohki, Kazuyoshi, 2023. "Disruptive innovation by heterogeneous incumbents and economic growth: When do incumbents switch to new technology?," Journal of Mathematical Economics, Elsevier, vol. 107(C).
    10. Sumiko Niwa, 2018. "Effects of a blocking patent on R&D with endogenous survival activities," Journal of Economics, Springer, vol. 125(3), pages 263-277, November.
    11. He, Qichun, 2018. "Inflation and health in a Schumpeterian growth model: Theory and evidence," Economic Modelling, Elsevier, vol. 75(C), pages 159-168.
    12. Chu, Angus C. & Shen, Guobing & Zhang, Xun, 2017. "Imports and Intellectual Property Rights on Innovation in China," MPRA Paper 81706, University Library of Munich, Germany.
    13. Chu, Angus C. & Fan, Haichao & Shen, Guobing & Zhang, Xun, 2018. "Effects of international trade and intellectual property rights on innovation in China," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 110-121.
    14. Lu, You-Xun & Lai, Ching-Chong, 2021. "Effects of patent policy on growth and inequality: A perspective of exogenous and endogenous quality improvements," MPRA Paper 111183, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic growth; Patent protection; R & D;
    All these keywords.

    JEL classification:

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