Chu, Angus C. (2009): Effects of Patent Length on R&D: A Quantitative DGE Analysis.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Effects of Patent Length on R&D: A Quantitative DGE Analysis|
|Keywords:||innovation-driven growth; intellectual property rights; patent length; 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:||24. Aug 2009 13:02|
|Last Modified:||12. Feb 2013 19:42|
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