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: In this note, we explore the different implications of patent breadth and R&D subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We find that these two policy instruments have the same positive effect on economic growth when the model exhibits counterfactual scale effects under an exogenous number of firms. However, when the model becomes scale-invariant under an endogenous number of �firms, R&D subsidies increase economic growth but decrease the number of firms, whereas patent breadth expands the number of firms but reduces economic growth. Therefore, R&D subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating 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, Revised 2012-09
New Economics Papers: this item is included in nep-com, nep-dge, nep-fdg, nep-ind, nep-ino, nep-ipr, nep-pr~ and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/41083/1/MPRA_paper_41083.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/48653/1/MPRA_paper_48653.pdf revised version (application/pdf)

Related works:
Working Paper: Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure (2012)
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:pra:mprapa:41083

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().