Are Intellectual Property Rights Detrimental to Innovation?
AbstractIntellectual property rights are legal constraints that limit conditions of entry in industries where incumbents are innovators. The set of legal constraints is the same for all industries, and there is no consideration of the possibility that the externalities created by entry in a given industry may not necessarily be negative for the incumbent, or that the incumbent's R&D expenditures might actually be detrimental to new entrants. We show that one unique set of legal rules can foster innovation in some industries and be detrimental in others. Our model is illustrated by case studies from the Information and Communication Technologies industry.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 16 (2009)
Issue (Month): 3 ()
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Other versions of this item:
- Crampes, Claude & Langinier, Corinne, 2005. "Are Intellectual Property Rights Detrimental to Innovation?," Staff General Research Papers 12267, Iowa State University, Department of Economics.
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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