Chu, Angus C. (2008): Effects of Blocking Patents on R&D: A Quantitative DGE Analysis.
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What are the effects of blocking patents on R&D and consumption? This paper develops a quality-ladder growth model with overlapping intellectual property rights and capital accumulation to quantitatively evaluate the effects of blocking patents. The analysis focuses on two policy variables (a) patent breadth that determines the amount of profits created by an invention, and (b) the profit-sharing rule that determines the distribution of profits between current and former inventors along the quality ladder. The model is calibrated to aggregate data of the US economy. Under parameter values that match key features of the US economy and show equilibrium R&D underinvestment, I find that reducing the extent of blocking patents by changing the profit-sharing rule would lead to a significant increase in R&D, consumption and welfare. Also, the paper derives and quantifies a dynamic distortionary effect of patent policy on capital accumulation.
|Item Type:||MPRA Paper|
|Institution:||University of Michigan|
|Original Title:||Effects of Blocking Patents on R&D: A Quantitative DGE Analysis|
|Keywords:||blocking patents; endogenous growth; patent breadth; R&D|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O34 - Intellectual Property Rights
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||Angus C. Chu|
|Date Deposited:||18. Sep 2008 09:58|
|Last Modified:||13. Feb 2013 09:10|
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Available Versions of this Item
Optimal Patent Breadth: Quantifying the Effects of Increasing Patent Breadth. (deposited 09. Jul 2007)
A Generalized Quality-Ladder Growth Model with Patent Breadth: Quantifying the Effects of Blocking Patents on R&D. (deposited 06. Sep 2007)
A Generalized Quality-Ladder Growth Model with Overlapping Intellectual Property Rights: Quantifying the Effects of Blocking Patents on R&D. (deposited 01. Nov 2007)
- Effects of Blocking Patents on R&D: A Quantitative DGE Analysis. (deposited 18. Sep 2008 09:58) [Currently Displayed]
- A Generalized Quality-Ladder Growth Model with Overlapping Intellectual Property Rights: Quantifying the Effects of Blocking Patents on R&D. (deposited 01. Nov 2007)
- A Generalized Quality-Ladder Growth Model with Patent Breadth: Quantifying the Effects of Blocking Patents on R&D. (deposited 06. Sep 2007)