Effects of Patent Length on R&D: A Quantitative DGE Analysis
Angus Chu
No 09-A001, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan
Abstract:
This paper develops an R&D-growth model and calibrates the model to aggregate data of the US economy to quantify a structural relation ship 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)
Pages: 30 pages
Date: 2009-01, Revised 2009-12
New Economics Papers: this item is included in nep-dge, nep-ino, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (3)
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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)
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