Intellectual Property Rights Protection and Endogenous Economic Growth Revisited

Cysne, Rubens Penha; Turchick, David

doi:10.2139/ssrn.2392337

Download This Paper

Open PDF in Browser

Add Paper to My Library

Intellectual Property Rights Protection and Endogenous Economic Growth Revisited

29 Pages Posted: 8 Feb 2014

See all articles by Rubens Penha Cysne

Rubens Penha Cysne

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças

David Turchick

Department of Economics, University of São Paulo (FEA-USP)

Date Written: November 7, 2010

Abstract

An analytical solution to the lab-equipment growth model (Rivera-Batiz and Romer,1991) with an exogenous imitation rate is presented and applied to study the policy tradeoff between weaker levels of intellectual property rights (IPR) protection yielding more consumption today, and stronger levels yielding more growth tomorrow. This has already been studied in Kwan and Lai (2003); however, a mistake in writing out the dynamics of the problem has contaminated that analysis. For the whole parameter space considered there, the conclusion is no longer to strengthen IPR protection partially, but fully. The tradeoff persists, though, for different choices of parameters.

Keywords: Innovation; Lab-equipment model; Patent protection; Growth

JEL Classification: O31; O34; O4

Suggested Citation: Suggested Citation

Cysne, Rubens Penha and Turchick, David, Intellectual Property Rights Protection and Endogenous Economic Growth Revisited (November 7, 2010). Available at SSRN: https://ssrn.com/abstract=2392337 or http://dx.doi.org/10.2139/ssrn.2392337