Intellectual property and product market competition regulations in a model with two R&D performing sectors

0542050 - NHU-C 2022 RIV GB eng J - Journal Article
Jerbashian, Vahagn
Intellectual property and product market competition regulations in a model with two R&D performing sectors.
Macroeconomic Dynamics. Roč. 25, č. 1 (2021), s. 59-80. ISSN 1365-1005. E-ISSN 1469-8056
R&D Projects: GA ČR(CZ) GBP402/12/G097
Institutional support: Progres-Q24
Keywords : intellectual property regulation * product market regulation * two R&D sectors
OECD category: Applied Economics, Econometrics
Impact factor: 1.325, year: 2021
Method of publishing: Limited access
https://doi.org/10.1017/S1365100518000573

I analyze the impact of intellectual property and product market competition regulations on innovation and long-run growth in an endogenous growth model with two R&D performing sectors. I show that strengthening intellectual property rights and competition in a sector increases its R&D investments. However, these policies adversely affect R&D investments in the other sector because of increased factor competition between the sectors. As a result, the overall impact of such policies on economic growth is ambiguous. I perform a numerical exercise in an attempt to resolve this ambiguity. This exercise suggests that strengthening intellectual property rights increases economic growth, but higher competition has a very limited effect on growth.
Permanent Link: http://hdl.handle.net/11104/0319544