Product vs. Process Patent
University of Nottingham Research Paper No. 2004/18
25 Pages Posted: 2 Aug 2005
This paper provides a theoretical analysis of product and process patent regimes in the context of North-South trade. For some parametric configurations, we show that Northern government would favor the product patent regime in the South, although the Northern firm would prefer the process patent regime in the South leading to a conflict of interests between the Northern government and Northern firm. It is also possible that the Southern firm may prefer the product patent regime in the South whereas the Southern government prefers the opposite. Most interestingly, we find situations when Northern and Southern governments and both Northern and Southern firms are better off under the process patent regime in the South.
Keywords: Process patent, Product patent, North-South trade, Welfare
JEL Classification: D45, L12, O33
Suggested Citation: Suggested Citation