Patentability and Knowledge Spillovers of Basic R&D

• Autores: Angus C. Chus, Yuichi Furukawa
• Localización: Southern Economic Journal, ISSN 0038-4038, ISSN-e 2325-8012, Vol. 79, Nº. 4, 2013, págs. 928-945
• Idioma: inglés
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• Resumen

  • This study develops a research and development (R&D)-based growth model with basic and applied research to analyze the growth and welfare effects of two patent instruments: (i) the patentability of basic R&D and (ii) the division of profit between basic and applied researchers. We find that for the purpose of stimulating basic R&D and economic growth simultaneously, increasing the share of profit assigned to basic researchers is more effective than raising the patentability of basic R&D, which has either a negative effect or an inverted-U effect on technological progress. However, a benevolent patent authority requires both patent instruments to achieve the socially optimal allocation in the decentralized economy.