Growth Maximising Patent Lifetime

13 Pages Posted: 3 Oct 2000

See all articles by Alberto Bucci

Alberto Bucci

University of Milan - Department of Business Policy and Economics

H.C. Saglam

Catholic University of Louvain (UCL) - School of Economic and Social Research (IRES)

Date Written: September 2000

Abstract

Using a vertical differentiation model of endogenous growth with stochastic R&D activity, we characterise the optimal patent lifetime a government would set in order to maximise economic growth. We show that a finite patent lifetime does exist and is unique provided that the expected rate of return from R&D is sufficiently large. Additionally, we analyse the impact of the level of competition in the R&D sector, the interest rate, the monopoly profit and the productivity parameter of research technology on this optimal patent lifetime.

Keywords: Endogenous growth, patents lifetime, innovation

JEL Classification: O31, O38, O41

Suggested Citation

Bucci, Alberto and Saglam, H.C., Growth Maximising Patent Lifetime (September 2000). Available at SSRN: https://ssrn.com/abstract=243901 or http://dx.doi.org/10.2139/ssrn.243901

Alberto Bucci (Contact Author)

University of Milan - Department of Business Policy and Economics ( email )

Via Mercalli, 23
20122-Milano
Italy
+39(0)2 50321.463 (Phone)
+39(0)2 50321.505 (Fax)

H.C. Saglam

Catholic University of Louvain (UCL) - School of Economic and Social Research (IRES)

3, Place Montesquieu
1348 Louvain-la-Neuve
Belgium

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