Chu, Angus C. - Institute of Economics, Academia Sinica - 2009
structural relation ship between patent length, R&D and consumption. Under parameter values that match the empirical flow …-profit depreciation rate of patents and other key features of the US economy, extending the patent length beyond 20 years leads to a … negligible increase in R&D despite equilibrium R&D underinvestment. In contrast, shortening the patent length leads to a …