Economics at your fingertips  

Patents, R&D subsidies, and endogenous market structure in a schumpeterian economy

Angus Chu, Yuichi Furukawa and Lei Ji

Southern Economic Journal, 2016, vol. 82, issue 3, 809-825

Abstract: This study explores the different implications of patent breadth and R&D subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We find that when the number of firms is fixed in the short run, patent breadth and R&D subsidies serve to increase economic growth as in previous studies. However, when market structure adjusts endogenously in the long run, R&D subsidies increase economic growth but decrease the number of firms, whereas patent breadth expands the number of firms but reduces economic growth. Therefore, in accordance with empirical evidence, R&D subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating long‐run economic growth.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)

Related works:
Working Paper: Patents RD subsidies and endogenous market structure in a Schumpeterian economy (2013) Downloads
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:

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2024-07-01
Handle: RePEc:wly:soecon:v:82:y:2016:i:3:p:809-825