INTELLECTUAL PROPERTY RIGHTS, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

Lewis S. Davis () and Fuat Şener
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Lewis S. Davis: Department of Economics, Union College, Schenectady, NY, USA
Fuat Şener: Department of Economics, Union College, Schenectady, NY, USA

Journal of International Commerce, Economics and Policy (JICEP), 2012, vol. 03, issue 01, 1-28

Abstract: We consider intellectual property rights (IPRs) in a Schumpeterian growth model in which patent holders face the threats of profit loss due to imitation and complete valuation loss due to outside innovation. We disaggregate IPR policies by distinguishing between the quality of the IPR regime and the intensity of IPR enforcement. An increase in the quality of the IPR regime unambiguously promotes growth. However, the relationship between IPR enforcement intensity and growth follows an inverted U-shaped curve. The growth-maximizing intensity of IPR enforcement is decreasing in institutional quality. We also investigate the model's welfare implications and examine the economy under a no-growth equilibrium.

Keywords: Technological change; institutional quality; growth; imitation; innovation; intellectual property rights; O1; O34; O43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S1793993312400054

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