Igor Ribeiro Azevedo
Master's – Optimal Patent Duration in a Lab-Equipment Model
Advisor: Prof. Dr. David Daniel Turchick Rubin
Comission: Profs. Drs. Ariaster Baumgratz Chimeli, Bernardo, de Vasconcellos Guimarães and Eduardo Correia de Souza
Class: 217, FEA-5
In this article we study optimal patent duration in a lab-equipment horizontal innovation growth framework in which patented intermediate goods are imitated – and intellectual property rights (IPR) are as a result overruled. For logarithmic utility we find that, in sheer opposition to previous works, it may be optimal to provide either full or no patent protection, in contrast to the view that in such a framework reducing patent protection constitutes a social loss. Moreover, as we allow for higher values of the relative risk aversion coefficient, we might find interior solutions to the optimal patent duration problem corresponding to utility models - a type of IPR designed for protecting intermediate goods - terms in OECD countries.
*Abstract provided by the author