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Patent protection and innovation in a vertical structure

Author

Listed:
  • Debasmita Basak

    (University of Nottingham)

  • Arijit Mukherjee

    (University of York)

Abstract

We show a new way through which patent protection affects innovation. We show that patent protection may reduce the final goods producers' incentives for innovation in industries with imperfectly competitive input markets. The input market structure may play an important role in this respect.

Suggested Citation

  • Debasmita Basak & Arijit Mukherjee, 2012. "Patent protection and innovation in a vertical structure," Economics Bulletin, AccessEcon, vol. 32(1), pages 837-842.
    • Handle: RePEc:ebl:ecbull:eb-11-00286
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P78.pdf
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    References listed on IDEAS

    as
    1. Dhillon, Amrita & Petrakis, Emmanuel, 2002. "A generalised wage rigidity result," International Journal of Industrial Organization, Elsevier, vol. 20(3), pages 285-311, March.
    2. Mazzoleni, Roberto & Nelson, Richard R., 1998. "The benefits and costs of strong patent protection: a contribution to the current debate," Research Policy, Elsevier, vol. 27(3), pages 273-284, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Leonard F.S. Wang & Arijit Mukherjee, 2014. "Patent Protection, Innovation and Technology Licensing," Australian Economic Papers, Wiley Blackwell, vol. 53(3-4), pages 245-254, December.

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    More about this item

    Keywords

    Patent protection; Innovation; Input market;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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