Profit-division bargaining, blocking patents, and social welfare in a Schumpeterian growth model

• Main Authors: Chen, I-Lun, 陳逸倫
• Other Authors: Lai, Ching-Chong
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/6pxtkn

碩士 === 國立政治大學 === 經濟學系 === 107 === This thesis develops a quality-ladder growth model with blocking patents and the profit-division rule. Our model introduces generalized Nash bargaining solution to determine the distribution of profits between current and former inventors. In our model, each of these two innovators owns its bargaining power. Also, the government has two policy instruments to improve social welfare: patents breadth and R&D subsidies. The main focus of this thesis is to study whether the relative bargaining power between current and former inventors, patents breadth, and R&D subsidies are powerful to affect economic growth and social welfare. Some main findings emerge from the analysis. First, in association with increases in the bargaining power, the extent of patents protection, and the subsidy rate on R&D production, the economy's growth rate will rise in response, and vice versa. This study also deals with the welfare analysis, and our analysis focuses on whether the government's R&D subsidy policy is effective to correct the externalities associated with R&D production. Second, both policy instruments of patent protection and R&D subsidies are mutually dependent when the government seeks for the second-best optimum. Finally, we find that the optimal subsidy rate on R&D production at the second-best optimum are equal to that at the first-best optimum, and all relevant endogenous variables are the same under both the second-best regime and the first-best regime. Accordingly, the optimum subsidy polity on R&D production in second best optimum can eliminate all distortions within the model, and bring the economy back to the Pareto optimum equilibrium.