 Optimal mix of R&D subsidy and patent protection in a heterogeneous-industry R&D-based growth modelJournal of Economic Dynamics and Control, 2023, vol. 154, issue C Abstract: This paper constructs an R&D-based endogenous growth model with heterogeneous industries in which the parameters, including the contribution of R&D to productivity, differ by industry. Using this model to examine the optimal mix of R&D subsidies and patent protection, we obtain the following results. First, R&D subsidies should be set higher (lower) in industries with a higher (lower) contribution of R&D to productivity, whereas patent breadth should be set such that markups are uniform across all industries. Second, we derive the optimal mix in the situation where R&D subsidies and patent protection are uniform across industries and numerically show that the uniform constraint on R&D subsidies involves significant growth and welfare losses and that greater heterogeneity across industries significantly magnifies them. Keywords: Endogenous growth; Heterogeneous-industry model; Patent protection; R&D subsidies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:154:y:2023:i:c:s016518892300129x DOI: 10.1016/j.jedc.2023.104723 Access Statistics for this article Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok More articles in Journal of Economic Dynamics and Control from Elsevier |
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