Patents RD subsidies and endogenous market structure in a Schumpeterian economy
Angus Chu (),
Yuichi Furukawa () and
Lei Ji ()
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Lei Ji: Shanghai University of finance and economics China
No 2013-19, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)
This study explores the different implications of patent breadth and RD subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We fend 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 the number of firms adjusts endogenously in the long run, RD subsidies increase economic growth but decrease the number of firms,whereas patent breadth expands the number of firms but reduces economic growth. Therefore, RD subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating long-run economic growth.
Keywords: economic growth; endogenous market structure; patents rd subsidies (search for similar items in EconPapers)
JEL-codes: O30 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-fdg, nep-ino, nep-ipr, nep-pr~ and nep-tid
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Journal Article: Patents, R&D subsidies, and endogenous market structure in a schumpeterian economy (2016)
Working Paper: Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1319
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