EconPapers    
Economics at your fingertips  
 

Optimal Patent Protection in a Two-Sector Economy

Ai Ting Goh and Jacques Olivier
Additional contact information
Jacques Olivier: Department of Mathematics, University College, London

International Economic Review, 2002, vol. 43, issue 4, 1191-1214

Abstract: This article addresses the issue of optimal patent protection in an economy with a downstream and an upstream sector. The key insight is that higher patent protection in the downstream sector raises the incentives of agents to do R&D in that sector but discourages innovation in the upstream sector because of a market size effect. Hence, higher patent protection in the upstream sector accelerates growth whereas higher patent protection in the downstream sector slows it down. If some innovation is socially desirable, optimal patent protection is necessarily higher in the upstream than in the downstream sector. Copyright 2002 by the Economics Department of the University of Pennsylvania and Osaka University Institute of Social and Economic Research Association

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (61) Track citations by RSS feed

Downloads: (external link)
http://openurl.ingenta.com/content?genre=article&i ... volume=43&spage=1191 (application/pdf)
Free access to full text is restricted to Ingenta subscribers.

Related works:
Working Paper: Optimal Patent Protection in a Two-Sector Economy (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:43:y:2002:i:4:p:1191-1214

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().

 
Page updated 2021-03-28
Handle: RePEc:ier:iecrev:v:43:y:2002:i:4:p:1191-1214