This paper provides a first comprehensive quantitative analysis of optimal patent policy in the global economy. We … introduce a new framework, which combines trade and growth theory into a tractable tool for quantitative research. Our … application delivers three main results. First, the potential gains from international cooperation over patent policies are large …

We study the effect of stronger patent protection on innovation activities of firms and firm-product level markups …. Relying on cross-industry differences in the use of patents, we exploit firm-level variation in exposure to India's patent … reform. For firms more exposed to stronger patent protection, we find an increase in patenting and R&D expenditure post …