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Technology Diffusion with Learning Spillovers: Patent Versus Free Access

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  • MATTHIEU GLACHANT
  • YANN MÉNIÈRE

Abstract

The paper analyzes the interplay between technology diffusion and patent law. We develop a dynamic model where initial adoptions generate learning spillovers that reduce the cost of subsequent adoptions. In this setting, we contrast technology diffusion paths under competitive supply, subsidized adoption and patent protection. Competitive supply entails various coordination failures that cannot be fully fixed through a public subsidy. We show that a patent holder can internalize externalities more efficiently, insofar as patent protection is fully effective. By contrast, fully competitive supply may be more efficient when patent enforcement is imperfect.

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File URL: http://hdl.handle.net/10.1111/j.1467-9957.2012.02337.x
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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 81 (2013)
Issue (Month): 5 (09)
Pages: 683-711

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Handle: RePEc:bla:manchs:v:81:y:2013:i:5:p:683-711

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Cited by:
  1. Rey, Patrick & Salant, David, 2012. "Abuse of Dominance and Licensing of Intellectual Property," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 712, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Rockett, Katharine, 2012. "Perspectives on the knowledge-based society: An introduction to the special issue," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(35), pages =1-22.
  3. Katharine Rockett, 2009. "Property Rights and Invention," Economics Discussion Papers, University of Essex, Department of Economics 663, University of Essex, Department of Economics.

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