 Patent policy at a tipping point: Why stronger patent protection may not foster economic growthPedro R.D. Bom and Martin Stojanovikj Economic Modelling, 2025, vol. 153, issue C Abstract: Empirical evidence suggests that stronger patent protection has, at most, a modest positive effect on economic growth. However, Schumpeterian growth models yield a wide range of predictions, ranging from positive to significantly negative effects on economic growth. In this study, we develop a Schumpeterian growth model incorporating an endogenous innovation scale, a generalized innovation function integrating R&D lab equipment and labor-embodied technical knowledge, and an effect related to the complexity of innovation. Plausible calibrations suggest that, in accordance with the evidence, a typical OECD economy is situated near the peak of an inverted-U-shaped curve, wherein enhanced patent protection has little or no effect on growth. In economies with high innovation arrival rates or large markups, the effect may even be negative. Keywords: Endogenous innovation scale; Endogenous markups; Patent breadth; Patent protection; Economic growth; Innovation; Intellectual property rights (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:ecmode:v:153:y:2025:i:c:s0264999325003517 DOI: 10.1016/j.econmod.2025.107356 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.