EconPapers    
Economics at your fingertips  
 

Patent Protection, Technological Change and Wage Inequality: Theory

Shiyuan Pan, Tailong Li and Heng-Fu Zou ()
Additional contact information
Shiyuan Pan: School of Economics and Center for Research of Private Economy, Zhejiang University
Tailong Li: School of Economics & Management, Zhejiang Sci-Tech University

No 537, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: We develop a directed-technological-change model to address the issue of the optimal patent system and investigate how the optimal patent system influences the direction of technological change and the inequality of wage, where patents are categorized as skill- and labor-complementary. The major results are: (i) Finite patent breadth maximizes the social welfare level; (ii) Optimal patent breadth increases with the amount of skilled (unskilled) workers; (iii) Optimal patent protection is skill-biased, because an increase in the amount of skilled workers increases the dynamic benefits of the protection for skill-complementary patents via the economy of scale of skill-complementary technology; (iv) Skill-biased patent protection skews inventions towards skills, thus increasing wage inequality.

Keywords: Patent Breadth; Skill-Biased Patent Protection; Skill-Biased Technological Change; Wage Inequality; Economic Growth (search for similar items in EconPapers)
JEL-codes: J31 O31 O34 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2012-03
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~ and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://down.aefweb.net/WorkingPapers/w537.pdf (application/pdf)

Related works:
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:cuf:wpaper:537

Access Statistics for this paper

More papers in CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().

 
Page updated 2024-05-12
Handle: RePEc:cuf:wpaper:537