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Knowledge diffusion under patent with asymmetric firms

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Author Info
Arijit Mukherjee () (University of Nottingham, UK)
Uday Bhanu Sinha () (Delhi School of Economics, India)

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Abstract

We show that if patent protection and trade secrecy generate asymmetric market structure, an innovator may prefer patent protection than trade secrecy even if the diffusion probability is higher under the former but it increases market concentration by preventing some imitators. So, whether an innovator prefers patent protection or trade secrecy depends on the trade-off between the diffusion probability and market concentration.

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File URL: http://economicsbulletin.vanderbilt.edu/2007/volume12/EB-07L50002A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 12 (2007)
Issue (Month): 9 ()
Pages: 1-6
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:12:y:2007:i:9:p:1-6

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: Asymmetric firms; Innovation; Knowledge diffusion; Patents; Trade secrecy;

Find related papers by JEL classification:
L5 - Industrial Organization - - Regulation and Industrial Policy
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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This page was last updated on 2009-12-12.

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