Economic Growth with Imperfect Protection of Intellectual Property Rights

Ryo Horii and Tatsuro Iwaisako

No 05-23-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper examines the growth effects of intellectual property right (IPR) protection in a quality-ladder model of endogenous growth. Stronger IPR protection, which reduces the imitation probability, increases the reward for innovation. However, stronger protection also gradually reduces the number of competitive sectors, in which innovation is easier than in monopolistic sectors. With free entry to R&D, the number of researchers in each remaining competitive sector increases, but the concentration of R&D activity raises the possibility of unnecessary duplication of innovation, thereby hindering growth. Consequently, imperfect rather than perfect protection maximizes growth. Welfare and scale effects are also examined.

Keywords: intellectual property rights; endogenous growth; quality ladder; imitation; leapfrogging; duplication. (search for similar items in EconPapers)
JEL-codes: O31 O34 O41 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2005-08, Revised 2006-04
New Economics Papers: this item is included in nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/0523R.pdf (application/pdf)

Related works:
Journal Article: Economic Growth with Imperfect Protection of Intellectual Property Rights (2007)
Working Paper: Economic Growth with Imperfect Protection of Intellectual Property Rights (2005)
Working Paper: Economic Growth with Imperfect Protection of Intellectual Property Rights (2005)
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:osk:wpaper:0523r

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().