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Patents and R&D: a Classroom Experiment

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  • Amy Diduch

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    (Mary Baldwin College)

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    Abstract

    Public policy towards patents has assumed a robust positive relationship between the strength of patent protection and the level of innovative research effort even though economic theory and empirical evidence suggest that the impact of patents on research varies considerably by industry. This classroom experiment provides students with an introduction to two competing models of the impact of patents on R&D: the 'winner-take-all' model contains incentives for excessive research effort and the research effort and the 'knowledge spillover' model contains incentives for free riding. Class discussion explores potential changes to current patent policy and policy alternatives for stimulating R&D.

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    File URL: http://www.economicsnetwork.ac.uk/iree/v9n2/diduch.pdf
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    Bibliographic Info

    Article provided by Economics Network, University of Bristol in its journal International Review of Economics Education.

    Volume (Year): 9 (2010)
    Issue (Month): 2 ()
    Pages: 67-83

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    Handle: RePEc:che:ireepp:v:9:y:2010:i:2:p:67-83

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    Postal: University of Bristol, BS8 1HH, United Kingdom
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    1. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
    2. Kremer, Michael R., 1998. "Patent Buyouts: A Mechanism for Encouraging Innovation," Scholarly Articles 3693705, Harvard University Department of Economics.
    3. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
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    Cited by:
    1. Gerald Eisenkopf & Pascal Sulser, 2013. "A Randomized Controlled Trial of Teaching Methods: Do Classroom Experiments Improve Economic Education in High Schools?," Working Paper Series of the Department of Economics, University of Konstanz 2013-17, Department of Economics, University of Konstanz.

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