Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure

Angus Chu and Yuichi Furukawa

MPRA Paper from University Library of Munich, Germany

Abstract: This letter explores the different implications of patent breadth and R&D subsidies on economic growth and endogenous market structure in a Schumpeterian model. We find that the two policy instruments have the same positive effect on economic growth when the model exhibits scale effects under a fixed number of firms. When the model becomes scale-invariant under an endogenous number of firms, patent breadth increases economic growth but decreases the number of firms, whereas R&D subsidies increase the number of firms but decrease economic growth.

Keywords: economic growth; endogenous market structure; patents; R&D subsidies (search for similar items in EconPapers)
JEL-codes: O30 O40 (search for similar items in EconPapers)
Date: 2012-08
New Economics Papers: this item is included in nep-fdg, nep-ino, nep-ipr, nep-pr~ and nep-tid
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https://mpra.ub.uni-muenchen.de/48313/1/MPRA_paper_48313.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/50222/1/MPRA_paper_50222.pdf revised version (application/pdf)
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https://mpra.ub.uni-muenchen.de/59267/1/MPRA_paper_59267.pdf revised version (application/pdf)

Related works:
Working Paper: Patents RD subsidies and endogenous market structure in a Schumpeterian economy (2013)
Working Paper: Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure (2012)
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