The reward and contract theories of patents in a model of endogenous growth

• Published in: European economic review Vol. 147; p. 104178
• Main Author: Klein, Michael A.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.08.2022
• Subjects: Endogenous growth; Innovation; Patent policy; Patent puzzle; Patent thickets; Trade secrets; O34; Innovation; Trade secrets; Patent thickets; Endogenous growth; Patent puzzle; Patent policy; O31; O43
• ISSN: 0014-2921
• DOI: 10.1016/j.euroecorev.2022.104178

I develop a general equilibrium model of endogenous growth to jointly analyze two distinct theories of the patent system’s social value: (1) that patents stimulate innovation by enhancing private incentives to invest in R&D (reward theory) and (2) that patents disseminate technical information i...