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Discussion Papers In Economics And Business. 2016, 16-31, p. 1-37

Technology Diffusion, Pareto Distribution, and Patent Policy

Kishi, Keiichi

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

text

2016-12-16

We develop a Schumpeterian growth model based on technology diffusion. Each firm has a different productivity level. New entrants enter into the targeted industries by learning the existing technologies owned by the other firms. Some of the new entrants succeed to adopt the frontier technology. The other new entrants may adopt the non-frontier technologies. We show that if it is extremely difficult to adopt the frontier technology, the technology diffusion generates the Pareto distributions of firm size, productivity, and innovation size. Further, we introduce the minimum innovation size required for a patent into the model. That is, the patent office grants the patents only for superior inventions. We show that an increase in minimum innovation size may reduce the average patentable innovation size because of an endogenous response of the distribution of innovation size. This implies that if the patent office requires the superior innovations for the patents, it may cause innovators to produce a larger amount of inferior patentable innovations.

58735

Technology Diffusion, Pareto Distribution, and Patent Policy

Kishi, Keiichi

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

2016-12-16

Discussion Papers In Economics And Business

16-31

1

37

https://hdl.handle.net/11094/58735