We analyze recent contributions to growth theory based on the model of expanding variety of Romer [Romer, P. (1990). “Endogenous technological change”. Journal of Political Economy 98, 71–102]. In the first part, we present different versions of the benchmark linear model with imperfect...

Using a vertical differentiation model of endogenous growth with stochastic R&D activity, we characterise the optimal patent lifetime a government would set in order to maximise economic growth. We show that a finite patent lifetime does exist and is unique provided that the expected rate of...

This paper studies how the assignment of patents as collateral determines the savings of fi rms and magni fies the effect of innovative rents on investment in research and development (R&D). We analyse the behaviour of innovative fi rms that face random and lumpy investment opportunities in R&D....

In this paper, we study the impact of standard-essential status for patents on production possibilities of the economy and long-term growth. As we show, the innovators' risk of losing the standard-setting game ex-ante attenuates the anticipation of a larger market share. Moreover, when the...

The legal monopoly granted by the patent system has often been criticized for its inefficiency, which is exacerbated by the peculiarities of knowledge as a public good. In this paper we aim at studying more deeply the latter concern. Hence we build a model in which monopolistic exploitation does...

An endogenous growth model is developed where each period firms invest in researching and developing new ideas. An idea increases a firm's productivity. By how much depends on how central the idea is to a firm's activity. Ideas can be bought and sold on a market for patents. A firm can sell an...

Using a vertical differentiation model of endogenous growth with stochastic R&D activity, we characterise the optimal patent lifetime a government would set in order to maximise economic growth. We show that a finite patent lifetime does exist and is unique provided that the expected rate of...

We consider an endogenous growth model with two sectors: an intermediate input (or "upstream") sector and a final product (or "downstream") sector. Innovation takes place in both sectors. Following Gilbert and Shapiro (1990), we define patent breadth as the ability of the innovator to reap...