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The Growth Effects of National Patent Policies

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  • Elias Dinopoulos
  • Constantina Kottaridi

Abstract

We construct a two‐country (innovative North and imitating South) model of product‐cycle trade, fully endogenous Schumpeterian growth, and national patent policies. A move towards harmonization based on stronger Southern intellectual property rights (IPR) protection accelerates the long‐run global rates of innovation and growth, reduces the North–South wage gap, and has an ambiguous effect on the rate of international technology transfer. Patent harmonization constitutes a suboptimal global‐growth policy. However, if the global economy is governed by a common patent policy regime, then stronger global IPR protection: (a) increases the rates of global innovation and growth; (b) accelerates the rate of international technology transfer; and (c) has no impact on the North–South wage gap.

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  • Elias Dinopoulos & Constantina Kottaridi, 2008. "The Growth Effects of National Patent Policies," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 499-515, August.
    • Handle: RePEc:bla:reviec:v:16:y:2008:i:3:p:499-515
    DOI: 10.1111/j.1467-9396.2008.00742.x
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    References listed on IDEAS

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    Cited by:

    1. Zheng, Zhijie & Huang, Chien-Yu & Yang, Yibai, 2020. "Patent protection, innovation, and technology transfer in a Schumpeterian economy," European Economic Review, Elsevier, vol. 129(C).
    2. Helmut Wagner, 2012. "Is harmonization of legal rules an appropriate target? Lessons from the global financial crisis," European Journal of Law and Economics, Springer, vol. 33(3), pages 541-564, June.
    3. Yang, Xuebing, 2013. "Horizontal inventive step and international protection of intellectual property," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 338-355.
    4. Ganguly, Madhuparna, 2021. "Competition and Innovation: the effects of scientist mobility and stronger patent rights," MPRA Paper 107831, University Library of Munich, Germany.
    5. Dinopoulos, Elias & Segerstrom, Paul, 2010. "Intellectual property rights, multinational firms and economic growth," Journal of Development Economics, Elsevier, vol. 92(1), pages 13-27, May.
    6. Sener, Fuat & Zhao, Laixun, 2009. "Globalization, R&D and the iPod Cycle," Journal of International Economics, Elsevier, vol. 77(1), pages 101-108, February.
    7. Tian, Xian-Liang, 2017. "Sector-specific IPR protection to overcome technology-skill mismatch in South? A simple model," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 44-51.
    8. Takeo Hori & Hiroaki Yamagami, 2018. "Intellectual property rights protection in the presence of exhaustible resources," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(4), pages 759-784, October.
    9. Ganguly, Madhuparna, 2021. "Stronger Patent Regime, Innovation and Scientist Mobility," MPRA Paper 107635, University Library of Munich, Germany.
    10. Daniel Nepelski & Giuditta De Prato, 2012. "Does the Patent Cooperation Treaty work? A global analysis of patent applications by non-residents," JRC Research Reports JRC79541, Joint Research Centre, revised Nov 2012.
    11. Iwaisako, Tatsuro & Tanaka, Hitoshi & Futagami, Koichi, 2011. "A welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment," European Economic Review, Elsevier, vol. 55(8), pages 1137-1151.
    12. Yoshifumi Okawa, 2010. "Innovation, Imitation, and Intellectual Property Rights with International Capital Movement," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 835-848, November.
    13. Borota, Teodora, 2010. "Innovation and Imitation in a Model of North-South TradeRecent evidence on world trade patterns reveals North-South specialization across," Working Paper Series 2010:6, Uppsala University, Department of Economics.

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