Sequential R&D and blocking patents in the dynamics of growth
Journal
Journal of Economic Growth
ISSN
1381-4338
ISSN-Digital
1573-7020
Type
journal article
Date Issued
2014-06-01
Author(s)
Abstract
The incentives to conduct basic or applied research play a central role for economic growth. How does increasing early innovation appropriability affect basic research, applied research, innovation and growth? In a common law system an explicitly dynamic macroeconomic analysis is appropriate. This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with endogenous skill acquisition. We focus on two issues: (a) the over-protection versus the under-protection of intellectual property rights in basic research; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators. We show that the dynamic general equilibrium interactions may seriously mislead the empirical assessment of the growth effects of IPR policy: stronger protection of upstream innovation always looks bad in the short- and possibly medium-run. We also provide a simple "rule of thumb" indicator of the basic researcher bargaining power.
Language
English
Keywords
Endogenous growth · Basic and applied research ·Endogenous technological change · Common law
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Springer Science + Business Media B.V.
Publisher place
New York
Volume
19
Number
2
Start page
183
End page
219
Pages
37
Subject(s)
Eprints ID
234828