Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322769 
Year of Publication: 
2008
Series/Report no.: 
Discussion Papers Series No. 08-23
Publisher: 
Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute, Utrecht
Abstract: 
We develop an endogenous-growth model in which we distinguish between inventors and innovators. This distinction implies that stronger protection of intellectual property rights has an inverted U-shaped effect on economic growth. Intellectual property rights protection attributes part of the rents of commercial exploitation to the inventor that would otherwise accrue to the entrepreneur. Stronger patent protection will therefore increase the incentive to do R&D and generate new knowledge. This new knowledge has a positive effect on entrepreneurship, innovation and growth. However, after some point, further strengthening of patent protection will reduce the returns to entrepreneurship sufficiently to reduce the overall growth rate.
Subjects: 
Intellectual Property Rights
Knowledge Spillovers
Endogenous Growth
Entrepreneurship
R&D
Innovation
Incentives
Rents
JEL: 
M13
O31
O34
Document Type: 
Working Paper

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