Quantifying the Effects of Patent Protection on Innovation, Imitation, Growth, and Aggregate Productivity Academic Article uri icon


  • Abstract I develop a general equilibrium model in which patent protection can increase or decrease the costs of sequential innovation, original innovation, and imitation. Depending on these relative effects, protection can in theory increase or decrease markups, imitation, innovation, growth, and aggregate productivity. I discipline the model using data from several different sources, and find that weakening protection in the U.S. would lead to no change in markups and imitation, no change in long-run growth, a significant increase in the number of firms, and an increase in aggregate productivity of 11%.

published proceedings

  • The B.E. Journal of Macroeconomics

author list (cited authors)

  • Bento, P

citation count

  • 1

complete list of authors

  • Bento, Pedro

publication date

  • January 2021