Optimal Patent Length and Patent Width for an Economy with Creative Destruction and Non-Diversifiable Risk
نویسنده
چکیده
This study examines optimal public policy in a product cycle model where R&D firms innovate and imitate and households face nondiversifiable risk. The government controls product cycles by two policy instruments: patent length, i.e. the expected time an innovation is imitated, and patent width, i.e. the innovator’s profit after a successful imitation relative to that before. The main results are the following. An increase in patent length or patent width slows down economic growth. The more patient or the less risk averse the households, the longer and narrower the optimal patents. Journal of Economic Literature: L11, L16, O31, O34
منابع مشابه
Heterogeneous Innovations, Firm Creation and Destruction, and Asset Prices∗
We study the implications of the creative destruction lifecycle of innovation for asset prices. We develop a general equilibrium model of endogenous firm creation and destruction where “incremental” innovations by incumbents and “radical” innovations by entrants drive the volatility of growth prospects of the economy. Higher entry—bigger threat of displacement of incumbents by entrants—implies ...
متن کاملHeart Carcinoid Disease with Patent Foramen Ovale Treated by Mini Sternotomy
This case report was an attempt to present the importance of diagnostic echocardiography and closure of a patent foramen ovale in carcinoid heart disease. Herein, we present a case of a 48-year-old woman with a carcinoid metastasis presenting with tricuspid regurgitation, pulmonic stenosis, patent foramen ovale, and borderline left ventricular ejection fraction on an echocardiogram. Surgical in...
متن کاملIdentification of BKCa channel openers by molecular field alignment and patent data-driven analysis
In this work, we present the first comprehensive molecular field analysis of patent structures on how the chemical structure of drugs impacts the biological binding. This task was formulated as searching for drug structures to reveal shared effects of substitutions across a common scaffold and the chemical features that may be responsible. We used the SureChEMBL patent database, which prov...
متن کاملEndogenous growth and structural change through vertical and horizontal innovations
This paper combines horizontal and vertical innovations to build an endogenous growth model that allows for structural change. Older technologies are continuously replaced by newer ones due to creative destruction and new technologies appear as a result of horizontal innovations and as a result of consumers’ preferences for variety. We assume fixed operational costs for the manufacturing sector...
متن کاملEvaluation of Cortisol Level in Premature Neonates: Are There any Correlations between Prevalence of Patent Ductus Arteriosus and Prenatal Administration of Betamethasone?
Background: The results of previous studies suggested that there is an increased risk of patent ductus arteriosus (PDA) in the neonates with lower serum cortisol levels. This study aimed to assess the association between serum cortisol values and PDA and investigate if there is an association between PDA and the antenatal administration of betamethasone. Methods: The present study was carried o...
متن کامل