Chu, Angus C. and Furukawa, Yuichi (2012): Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure.
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This letter explores the different implications of patent breadth and R&D subsidies on economic growth and endogenous market structure in a Schumpeterian model. We find that the two policy instruments have the same positive effect on economic growth when the model exhibits scale effects under a fixed number of firms. When the model becomes scale-invariant under an endogenous number of firms, patent breadth increases economic growth but decreases the number of firms, whereas R&D subsidies increase the number of firms but decrease economic growth.
|Item Type:||MPRA Paper|
|Original Title:||Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure|
|Keywords:||economic growth; endogenous market structure; patents; R&D subsidies|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O30 - General
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Angus C. Chu|
|Date Deposited:||06. Aug 2012 12:17|
|Last Modified:||13. Feb 2013 22:02|
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