Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73395
Authors: 
Mosel, Malte
Year of Publication: 
2009
Series/Report no.: 
BGPE Discussion Paper 84
Abstract: 
Recent empirical studies suggest a need for a ?exible patent regime responding to industry characteristics. In practice, sector-speci?c modi?cations of patent strength already exist but lack theoretical foundation. This paper intends to make up for this neglect by scrutinizing in what direction industry characteristics in?uence optimal patent strength. It is found that patents ought to be weaker, the more intense competition, the higher R&D productivity, and the more intricate reverse engineering are. Unlike similar step-by-step innovation models of economic growth, the model assumes Cournot competition and introduces an empirically substantiated measure of sector di?erences in the ability to catch up with the technological leader. It is found that for most empirically plausible cases the familiar inverted-U between patent length and growth carries over to the Cournot set-up.
Subjects: 
Competition
endogenous growth
?exible patent protection
imitation
innovation
R&D
reverse engineering
Schumpeterian growth
Supplementary Protection Certi?cates
JEL: 
O31
O34
O41
L16
K20
Document Type: 
Working Paper

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