Patent law and complementary innovations
AbstractThis paper explores which patent policy should be applied to complementary innovations that are aggregated into broader technologies. I compare a setting in which complementary innovations must be bundled prior to patenting, with a second setting in which they can be patented separately. The first setting can improve static efficiency by avoiding the costs resulting from the scattering of complementary patents. But it also limits the disclosure of small innovations, which may lead to inefficient R&D cost duplications. A model capturing these effects shows that patenting complementary innovations separately is not efficient when innovations can be developed rapidly. This result justifies the enforcement of a severe "inventive step" or "non-obviousness" requirement in sectors where complementary innovations are frequent.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 52 (2008)
Issue (Month): 7 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eer
Innovation Patent R&D Complementarity;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jaffe, Adam B., 2000.
"The U.S. patent system in transition: policy innovation and the innovation process,"
Elsevier, vol. 29(4-5), pages 531-557, April.
- Adam B. Jaffe, 1999. "The U.S. Patent System in Transition: Policy Innovation and the Innovation Process," NBER Working Papers 7280, National Bureau of Economic Research, Inc.
- Suzanne Scotchmer & Jerry Green, 1990. "Novelty and Disclosure in Patent Law," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 131-146, Spring.
- Graham, Stuart J. H. & Hall, Bronwyn H. & Harhoff, Dietmar & Mowery, David C., 2002.
"Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-Examinations and European Patent Oppositions,"
Department of Economics, Working Paper Series
qt2qt097bd, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Stuart J. H. Graham & Bronwyn H. Hall & Dietmar Harhoff & David C. Mowery, 2002. "Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-examinations and European Patent Oppositions," NBER Working Papers 8807, National Bureau of Economic Research, Inc.
- Graham, Stuart J. H. & Hall, Bronwyn H. & Harhoff, Dietmar & Mowery, David C., 2002. "Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-examinations and European Patent Oppositions," Department of Economics, Working Paper Series qt8bs830w9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Stuart J. H. Graham & Bronwyn H. Hall & Dietmar Harhoff & David C. Mowery, 2003. "Post-Issue Patent "Quality Control": A Comparative Study of US Patent Re-examinations and European Patent Oppositions," Industrial Organization 0303009, EconWPA.
- Josh Lerner & Jean Tirole, 2004.
"Efficient Patent Pools,"
American Economic Review,
American Economic Association, vol. 94(3), pages 691-711, June.
- Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
- O'DONOGHUE, Ted & SCOTCHMER, Suzanne & THISSE, Jacques-François, .
"Patent breadth, patent life, and the pace of technological progress,"
CORE Discussion Papers RP
-1314, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, 03.
- Chen, Yijuan, 2012.
"Innovation frequency of durable complementary goods,"
Journal of Mathematical Economics,
Elsevier, vol. 48(6), pages 407-421.
- Yijuan Chen, 2010. "Innovation Frequency of Durable Complementary Goods," ANU Working Papers in Economics and Econometrics 2010-515, Australian National University, College of Business and Economics, School of Economics.
- Denicolò, Vincenzo & Halmenschlager, Christine, 2012. "Optimal patentability requirements with complementary innovations," European Economic Review, Elsevier, vol. 56(2), pages 190-204.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.