Effects of patents on the transition from stagnation to growth

This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off occurs when the populat...

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Bibliographic Details
Published in:Journal of population economics 2020-04, Vol.33 (2), p.395-411
Main Authors: Chu, Angus C., Kou, Zonglai, Wang, Xilin
Format: Article
Language:English
Subjects:
Demography
Developmental stages
Economic development
Economic growth
Economic models
Economics
Economics and Finance
Endogenous
Growth models
Intellectual property
Labor Economics
LEAD ARTICLE
Original Paper
Population Economics
Population number
Property rights
Social Policy
Stagnation
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Summary:This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off 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 development. Specifically, it leads to an earlier take-off but also reduces economic growth in the long run.
ISSN:0933-1433
1432-1475
DOI:10.1007/s00148-019-00753-6