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on Intellectual Property Rights |
|
Issue of 2016‒05‒08
one paper chosen by Giovanni Ramello Università degli Studi del Piemonte Orientale “Amedeo Avogadro” |
| By: | Pedro Bento (Texas A&M University, Department of Economics) |
| Abstract: | I develop a general equilibrium model in which patent protection can increase or decrease the costs of sequential innovation, original innovation, and imitation. Depending on these relative effects, protection can in theory increase or decrease markups, imitation, innovation, growth, and aggregate productivity. I discipline the model using data from several different sources, and find that weakening protection in the U.S. would lead to no change in markups and imitation, no change in long-run growth, a more than doubling of the number of firms, and an increase in aggregate productivity of 9 percent. |
| Keywords: | patent protection, firm size, productivity, innovation, imitation, competition |
| JEL: | O1 O3 O4 |
| Date: | 2016–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:txm:wpaper:20160411-001&r=ipr |