Welfare effects of patent protection and productive public services: Why do developing countries prefer weaker patent protection?

This paper examines the welfare-maximizing degree of patent protection in a growth model where the engines of economic growth are R&D and public services. The result shows that if public services are small, the welfare-maximizing level of patent protection is weaker.

► We develop a model where the engines of economic growth are R&D and public services. ► We examine the welfare-maximizing degree of patent protection. ► If public services are small, the welfare-maximizing patent protection is weaker. ► This result can explain why developing countries tend to prefer weaker patent protection.