Market for patents, monopoly, and misallocation

• Main Authors: WEI, Shang-jin, XU, Jianhuan, YIN, Ge, ZHANG, Xiaobo
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Endogenous growth; innovations; patent trade; misallocation; monopoly power; optimal pro-patent trade policy; Macroeconomics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2711; https://ink.library.smu.edu.sg/context/soe_research/article/3710/viewcontent/patent_trade.pdf
• Institution: Singapore Management University

The paper studies a possible “dark side” of patent trade in enhancing the market power of monopolists. We explore the different effects of China’s 2008 tax reform on patent innovations and sales across industries. In particular, although easier patent trade leads to more patent creation, the new pat...