Effects of Patents on the Industrial Revolution

Chu, Angus C. and Kou, Zonglai and Wang, Xilin (2019): Effects of Patents on the Industrial Revolution.

Abstract

This study provides a growth-theoretic analysis on the effects of intellectual property rights on the endogenous takeoff of an economy. We incorporate patent protection into a Schumpeterian growth model in which takeoff occurs when the population size crosses an endogenous threshold. We find that strengthening patent protection has contrasting effects on economic growth at different stages of the economy. Specifically, it leads to an earlier takeoff (i.e., an earlier industrial revolution) but also reduces economic growth in the long run.

• Item Type: MPRA Paper
• Language: English
• Keywords: intellectual property rights, endogenous takeoff, innovation, economic growt
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital

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