Patents, R&D subsidies, and endogenous market structure in a schumpeterian economy



Chu, Angus C ORCID: 0000-0002-7196-1277, Furukawa, Yuichi and Ji, Lei
(2016) Patents, R&D subsidies, and endogenous market structure in a schumpeterian economy. SOUTHERN ECONOMIC JOURNAL, 82 (3). pp. 809-825.

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Abstract

This study explores the different implications of patent breadth and RandD subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We find that when the number of firms is fixed in the short run, patent breadth and RandD subsidies serve to increase economic growth as in previous studies. However, when market structure adjusts endogenously in the long run, RandD subsidies increase economic growth but decrease the number of firms, whereas patent breadth expands the number of firms but reduces economic growth. Therefore, in accordance with empirical evidence, RandD subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating long-run economic growth.

Item Type: Article
Uncontrolled Keywords: O30, O40
Depositing User: Symplectic Admin
Date Deposited: 28 Mar 2019 08:50
Last Modified: 28 Mar 2023 07:25
DOI: 10.1002/soej.12122
Related URLs:
URI: https://livrepository.liverpool.ac.uk/id/eprint/3035159