Effects of Patent Length on R&D: A Quantitative DGE Analysis

Angus Chu

MPRA Paper from University Library of Munich, Germany

Abstract: This paper develops an R&D-growth model and calibrates the model to aggregate data of the US economy to quantify a structural relationship between patent length, R&D and consumption. Under parameter values that match the empirical flow-profit depreciation rate of patents and other key features of the US economy, extending the patent length beyond 20 years leads to a negligible increase in R&D despite equilibrium R&D underinvestment. In contrast, shortening the patent length leads to a significant reduction in R&D and consumption. Finally, this paper also analytically derives and quantifies a dynamic distortionary effect of patent length on capital investment.

Keywords: innovation-driven growth; intellectual property rights; patent length; R&D (search for similar items in EconPapers)
JEL-codes: O31 O34 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-dge, nep-ino, nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Effects of patent length on R&D: a quantitative DGE analysis (2010)
Working Paper: Effects of Patent Length on R&D: A Quantitative DGE Analysis (2009)
Working Paper: Economic Growth and Patent Policy: Quantifying the Effects of Patent Length on R&D and Consumption (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16918

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