Innovating like China: a theory of stage-dependent intellectual property rights Report as inadecuate




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Abstract

Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven bydomestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal intellectual property rights IPRprotection is stage-dependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, thecountry implements strong IPR protection to encourage domestic innovation. We also calibrate the model to aggregate data of the Chinese economy to simulate the optimalpath of patent strength, which is increasing as the country evolves towards the world technology frontier, and this dynamic pattern is consistent with the actual evolution ofthe patent system in China. Furthermore, we use a dynamic panel regression model to provide empirical evidence that supports the key implication of our theoretical model.



Item Type: MPRA Paper -

Original Title: Innovating like China: a theory of stage-dependent intellectual property rights-

Language: English-

Keywords: economic growth; stage-dependent intellectual property rights-

Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual CapitalO - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and IncentivesO - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General-





Author: Chu, Angus C.

Source: https://mpra.ub.uni-muenchen.de/43516/







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