INTELLECTUAL PROPERTY AND PRODUCT MARKET COMPETITION REGULATIONS IN A MODEL WITH TWO R&D PERFORMING SECTORS

Vahagn Jerbashian

Macroeconomic Dynamics, 2021, vol. 25, issue 1, 59-80

Abstract: I analyze the impact of intellectual property and product market competition regulations on innovation and long-run growth in an endogenous growth model with two R&D performing sectors. I show that strengthening intellectual property rights and competition in a sector increases its R&D investments. However, these policies adversely affect R&D investments in the other sector because of increased factor competition between the sectors. As a result, the overall impact of such policies on economic growth is ambiguous. I perform a numerical exercise in an attempt to resolve this ambiguity. This exercise suggests that strengthening intellectual property rights increases economic growth, but higher competition has a very limited effect on growth.

Date: 2021
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Working Paper: Intellectual Property and Product Market Competition Regulations in a Model with Two R&D Performing Sectors (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:macdyn:v:25:y:2021:i:1:p:59-80_4

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