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Effects of Patents on the Industrial Revolution

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  • Chu, Angus C.
  • Kou, Zonglai
  • Wang, Xilin

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.

Suggested Citation

  • Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2019. "Effects of Patents on the Industrial Revolution," MPRA Paper 91819, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91819
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    intellectual property rights; endogenous takeoff; innovation; economic growt;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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