This study develops an R&D-based growth model with vertical and horizontal innovation to shed some light on the current … debate on whether patent protection stimulates or stifles innovation. We analyze the effects of patent protection in the form … of blocking patents. We show that patent protection changes the direction of innovation by having asymmetric effects on …

This study develops a Schumpeterian growth model to analyze the effects of different patent instruments on innovation …. We first analyze patent breadth that captures the traditional positive effect of patent rights on innovation. Then, we … assigned to incumbents reduces entrants' incentives for innovation. This aspect of blocking patents captures the recently …

This study analyzes how patent protection affects innovation in an R&D-based growth model with elastic labor supply. We … find that increasing patent breadth may generate an inverted-U effect on innovation depending on whether the model features … the knowledge-driven or lab-equipment innovation process. This result highlights an important interaction between elastic …