Quantifying the Effects of Patent Protection on Innovation, Imitation, Growth, and Aggregate Productivity

Pedro Bento

No 20160411-001, Working Papers from Texas A&M University, Department of Economics

Abstract: I develop a general equilibrium model in which patent protection can increase or decrease the costs of sequential innovation, original innovation, and imitation. Depending on these relative effects, protection can in theory increase or decrease markups, imitation, innovation, growth, and aggregate productivity. I discipline the model using data from several different sources, and find that weakening protection in the U.S. would lead to no change in markups and imitation, no change in long-run growth, a more than doubling of the number of firms, and an increase in aggregate productivity of 9 percent.

Keywords: patent protection; firm size; productivity; innovation; imitation; competition (search for similar items in EconPapers)
JEL-codes: O1 O3 O4 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2016-04-11
New Economics Papers: this item is included in nep-com, nep-dge, nep-eff, nep-gro, nep-ino, nep-ipr, nep-pr~ and nep-pke
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https://pvsessions.tamu.edu/RePEc/bentopatents2.pdf Second version, 2016 (application/pdf)
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Related works:
Journal Article: Quantifying the Effects of Patent Protection on Innovation, Imitation, Growth, and Aggregate Productivity (2021)
Working Paper: Quantifying the Effects of Patent Protection on Innovation, Imitation, Growth, and Aggregate Productivity (2015)
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