Competition, imitation, and R&D productivity in agrowth model with sector-specific patent protection

Malte Mosel

No 84, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: Recent empirical studies suggest a need for a fexible patent regime responding to industry characteristics. In practice, sector-specifc modifcations of patent strength already exist but lack theoretical foundation. This paper intends to make up for this neglect by scrutinizing in what direction industry characteristics infuence optimal patent strength. It is found that patents ought to be weaker, the more intense competition, the higher R&D productivity, and the more intricate reverse engineering are. Unlike similar step-by-step innovation models of economic growth, the model assumes Cournot competition and introduces an empirically substantiated measure of sector differences in the ability to catch up with the technological leader. It is found that for most empirically plausible cases the familiar inverted-U between patent length and growth carries over to the Cournot set-up.

Keywords: Competition; endogenous growth; fexible patent protection; imitation; innovation; R&D; reverse engineering; Schumpeterian growth; Supplementary Protection Certifcates (search for similar items in EconPapers)
JEL-codes: K20 L16 O31 O34 O41 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2009-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://bgpe.cms.rrze.uni-erlangen.de/files/2023/0 ... atent-protection.pdf First version, 2009 (application/pdf)

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