Chu, Angus C. and Furukawa, Yuichi (2010): On the optimal mix of patent instruments.
Download (168Kb) | Preview
A special characteristic of the patent system is that it features multiple patent-policy levers that can be employed by policymakers. In this study, we develop a quality-ladder model to analyze the optimal mix of patent instruments. Specifically, we consider (a) patent breadth and (b) the division of profit in research joint ventures. We analytically derive optimal patent policies and then calibrate the model to quantitatively evaluate the welfare gain from optimizing both patent instruments as compared to optimizing only one patent instrument. In summary, we find that the welfare gain can be substantial.
|Item Type:||MPRA Paper|
|Original Title:||On the optimal mix of patent instruments|
|Keywords:||R&D; innovation; intellectual property rights|
|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:||30. Jul 2010 14:35|
|Last Modified:||21. Feb 2013 20:43|
Chu, A., 2009. Effects of blocking patents on R&D: A quantitative DGE analysis. Journal of Economic Growth 14, 55-78.
Cozzi, G., 1999. R&D cooperation and growth. Journal of Economic Theory 86, 17-49.
Cozzi, G., 2001. Inventing or spying? Implications for growth. Journal of Economic Growth 6, 55-77.
Cozzi, G., 2007. The Arrow effect under competitive R&D. The B.E. Journal of Macroeconomics (Contributions) 7, Issue 1, Article 2.
Cozzi, G., Giordani, P., and Zamparelli, L., 2007. The refoundation of the symmetric equilibrium in Schumpeterian growth models. Journal of Economic Theory 136, 788-797.
Cozzi, G., and Tarola, O., 2006. R&D cooperation, innovation, and growth. Journal of Institutional and Theoretical Economics 162, 683-701.
Denicolo, V., 1996. Patent races and optimal patent breadth and length. Journal of Industrial Economics 44, 249-265.
Furukawa, Y., 2007. The protection of intellectual property rights and endogenous growth: Is stronger always better? Journal of Economic Dynamics and Control 31, 3644-3670.
Futagami, K., and Iwaisako, T., 2007. Dynamic analysis of patent policy in an endogenous growth model. Journal of Economic Theory 132, 306-334.
Gilbert, R., and Shapiro, C., 1990. Optimal patent length and breadth. RAND Journal of Economics 21, 106-112.
Greenlee, P., 2005. Endogenous formation of competitive research sharing joint ventures. Journal of Industrial Economics 53, 355 - 391.
Grossman, G., and Helpman, E., 1991. Quality ladders in the theory of growth. Review of Economic Studies 58, 43-61.
Iwaisako, T., and Futagami, K., 2003. Patent policy in an endogenous growth model. Journal of Economics 78, 239-258.
Judd, K., 1985. On the performance of patents. Econometrica 53, 567-586.
Kamien, M., Muller, E., and Zang, I., 1992. Research joint ventures and R&D cartels. American Economic Review 82, 1293-1306.
Klemperer, P., 1990. How broad should the scope of patent protection be? RAND Journal of Economics 21, 113-130.
Li, C.-W., 2001. On the policy implications of endogenous technological progress. Economic Journal 111, C164-C179.
Nordhaus, W., 1969. Invention, Growth, and Welfare. The MIT Press.
O'Donoghue, T., and Zweimuller, J., 2004. Patents in a model of endogenous growth. Journal of Economic Growth 9, 81-123.
Penrose, E., 1959. The Theory of the Growth of the Firm. Oxford University Press.
Scotchmer, S., 2004. Innovation and Incentives. The MIT Press.
Tandon, P., 1982. Optimal patents with compulsory licensing. Journal of Political Economy 90, 470-486.
Yang, W., and Yen, Y., 2010. The dragon gets new IP claws: The latest amendments to the Chinese patent law. IPO Articles and Reports.
Available Versions of this Item
- On the optimal mix of patent instruments. (deposited 30. Jul 2010 14:35) [Currently Displayed]