Growth Maximizing Patent Life-Time

Alberto Bucci () and Çağrı Sağlam

No 2000019, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Using a vertical differentiation model of endogenous growth with stochastic R&D activity, we characterize the optimal patent life-time the government would set in order to maximize economic growth. We show that a finite patent life-time does exist and is unique provided that the expected rate of return from R&D is sufficiently large. Additionally, we analyze the impact of the level of competition in R&D sector, the interest rate, the level of monopoly profit and the productivity parameter of research technology on this optimal patent life-time.

Keywords: endogenous growth; patents life-time; innovation (search for similar items in EconPapers)
JEL-codes: O31 O38 O41 (search for similar items in EconPapers)
Pages: 9
Date: 2000-08-01
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Citations: View citations in EconPapers (2)

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Working Paper: Growth Maximizing Patent Lifetime (2000)
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