Patent Rights and Economic Growth: Evidence from Cross-Country Panels of Manufacturing Industries

32 Pages Posted: 9 Feb 2009 Last revised: 18 Oct 2013

See all articles by Albert G. Z. Hu

Albert G. Z. Hu

National University of Singapore (NUS) - Department of Economics

Ivan P. L. Png

National University of Singapore (NUS)

Date Written: August 10, 2012

Abstract

The objective of patent rights is to foster innovation and economic growth. However, to date, there is little robust evidence that patents “work” as intended.

Here, we study the impact of changes in effective patent rights within panels of up to 54 manufacturing industries in up to 72 countries between 1981-2000. We find that more patent-intensive industries responded to stronger patent laws with higher growth, which effect increased with GDP per capita. Between 1991-1995, an increase in the level of effective patent rights from Hong Kong to Australia would have raised the average growth of the leather industry by 1/18, but that of the other chemicals industry by about 1/5.

Patent rights increased growth through both factor accumulation and raising productivity. Our findings were robust to alternative measures of patent rights and patent intensity.

Keywords: patents, growth, manufacturing, productivity

JEL Classification: L60, O33, O34

Suggested Citation

Hu, Albert Guangzhou and Png, Ivan P. L., Patent Rights and Economic Growth: Evidence from Cross-Country Panels of Manufacturing Industries (August 10, 2012). CELS 2009 4th Annual Conference on Empirical Legal Studies Paper, Available at SSRN: https://ssrn.com/abstract=1339730 or http://dx.doi.org/10.2139/ssrn.1339730

Albert Guangzhou Hu

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link
Singapore 117570, Singapore 119077

Ivan P. L. Png (Contact Author)

National University of Singapore (NUS) ( email )

Singapore, 117543
Singapore
+65 6516-6807 (Phone)

HOME PAGE: http://sites.google.com/site/iplpng/

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