Template-Type: ReDIF-Paper 1.0

Author-Name: Malte Mosel
Author-X-Name-First: Malte
Author-X-Name-Last: Mosel


Title: Competition, imitation, and R&D productivity in agrowth model with sector-specific patent protection
   
	
Abstract: Recent empirical studies suggest a need for a fexible patent regime responding to industry characteristics. In practice, sector-specifc modifcations of patent strength already exist but lack theoretical foundation. This paper intends to make up for this neglect by scrutinizing in what direction industry characteristics infuence optimal patent strength. It is found that patents ought to be weaker, the more intense competition, the higher R&D productivity, and the more intricate reverse engineering are. Unlike similar step-by-step innovation models of economic growth, the model assumes Cournot competition and introduces an empirically substantiated measure of sector differences in the ability to catch up with the technological leader.
It is found that for most empirically plausible cases the familiar inverted-U between patent length and growth carries over to the Cournot set-up.
Length:  42 pages
Creation-Date:  2009-12
File-URL: http://www.bgpe.de/texte/DP/084_mosel.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 084
Classification-JEL: O31, O34, O41, L16, K20
Keywords: Competition, endogenous growth, fexible patent protection, imitation, innovation, R&D, reverse engineering, Schumpeterian growth, Supplementary Protection Certifcates
Handle: RePEc:bav:wpaper:084_mosel