Patent term extensions and commercialization lags in the pharmaceutical industry: A growth-theoretic analysis

نویسندگان

چکیده

Due to the lags in commercialization, effective life of a patent is generally less than its statutory term. We introduce commercialization into Schumpeterian growth model and explore effects term extensions on pharmaceutical R&D social welfare. Our results show that extending terms stimulates consumption homogeneous goods but generates an ambiguous effect pharmaceuticals. When have inverted-U welfare, optimal extension increases with length decreases input intensity lags. Finally, we calibrate find increasing breadth reduces extension.

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ژورنال

عنوان ژورنال: Journal of Macroeconomics

سال: 2023

ISSN: ['1873-152X', '0164-0704']

DOI: https://doi.org/10.1016/j.jmacro.2023.103519