Using Patents in Growth Models

This paper surveys the microeconomic literature of intellectual property design in order to assess assumptions regarding intellectual property protection in R&D-based endogenous growth models, and to suggest directions for that growth literature to extend. Growth models use largely inappropriate assumptions regarding the method of intellectual property reward. Determining optimal intellectual property design is complex and has important implications for economic performance. Insight into how the choice of intellectual property regime impacts growth and welfare will have significant policy implications