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Patents and R & D: The tournament effect

Author

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  • Prabal Roy Chowdhury

    (Indian Statistical Institute, New Delhi)

Abstract

We identify a new route through which patent protection may affect R&D incentives, the tournament effect. It may decrease R\&D incentives, in which case patent protection may either adversely affect the level of R&D, or may discourage licensing. In either case welfare may fall.

Suggested Citation

  • Prabal Roy Chowdhury, 2005. "Patents and R & D: The tournament effect," Discussion Papers 05-05, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:05-05
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    File URL: http://www.isid.ac.in/~pu/dispapers/dp05-05.pdf
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    References listed on IDEAS

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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. Michele Boldrin & David K Levine, 2003. "IER Lawrence Klein Lecture: The Case Against Intellectual Monopoly," Levine's Working Paper Archive 618897000000000493, David K. Levine.
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    Cited by:

    1. Adam Karbowski, 2020. "A Note on Patents and Leniency," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 97-108.
    2. Basak, Debasmita & Mukherjee, Arijit, 2018. "Labour unionisation structure and product innovation," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 98-110.
    3. Che, XiaoGang & Yang, Yibai, 2012. "Patent protection with a cooperative R&D option," Economics Letters, Elsevier, vol. 116(3), pages 469-471.
    4. Srobonti Chattopadhyay & Rittwik Chatterjee, 2019. "Patent Protection and R&D Incentives Under Incomplete Information," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(3), pages 699-705, September.
    5. Swapnendu Banerjee & Yuanzhu Lu & Sougata Poddar, 2021. "Technology selling and innovation with bargaining," Bulletin of Economic Research, Wiley Blackwell, vol. 73(1), pages 100-107, January.
    6. Marjit, Sugata & Xu, Xinpeng & Yang, Lei, 2009. "Offshore Outsourcing, Contractual R&D and Intellectual Property in Developing Countries," MPRA Paper 19362, University Library of Munich, Germany.
    7. Karbowski Adam & Prokop Jacek, 2020. "The Impact of Patents and R&D Cooperation on R&D Investments in a Differentiated Goods Industry," South East European Journal of Economics and Business, Sciendo, vol. 15(1), pages 122-133, June.
    8. Schmitz, Patrick W., 2007. "Exclusive versus non-exclusive licensing strategies and moral hazard," Economics Letters, Elsevier, vol. 97(3), pages 208-214, December.
    9. Che, Xiaogang & Yang, Yibai, 2009. "Patent Protection with Licensing," MPRA Paper 19438, University Library of Munich, Germany.
    10. Che, Xiaogang & Yang, Yibai, 2009. "Patent Protection with Cooperative R&D Option," MPRA Paper 19437, University Library of Munich, Germany.
    11. 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.
    12. Mukherjee, Arijit, 2006. "Patents and R&D with imitation and licensing," Economics Letters, Elsevier, vol. 93(2), pages 196-201, November.
    13. Rittwik Chatterjee & Srobonti Chattopadhyay & Tarun Kabiraj, 2018. "Spillovers and R&D Incentive under Incomplete Information," Studies in Microeconomics, , vol. 6(1-2), pages 50-65, June.
    14. Che, Xiaogang & Yang, Yibai, 2009. "Patent Protection with Cooperative R&D Option," MPRA Paper 19436, University Library of Munich, Germany.
    15. Mukherjee, Arijit & Mukherjee, Soma, 2013. "Technology licensing and innovation," Economics Letters, Elsevier, vol. 120(3), pages 499-502.
    16. Debasmita Basak & Andreas Hoefele & Arijit Mukherjee, 2022. "Wage bargaining and product innovation: The role of market expansion effect," Manchester School, University of Manchester, vol. 90(3), pages 319-340, June.
    17. Ding, Rong & Ko, Chiu Yu, 2021. "Does licensing improve welfare with rent dissipation?," Economic Modelling, Elsevier, vol. 105(C).
    18. Marjit, Sugata & Yang, Lei, 2015. "Does intellectual property right promote innovations when pirates are innovators?," International Review of Economics & Finance, Elsevier, vol. 37(C), pages 203-207.
    19. Arijit Mukherjee, 2017. "Patent Protection and R&D with Endogenous Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 65(1), pages 220-234, March.
    20. Hamid Beladi & Sugata Marjit & Xinpeng Xu & Lei Yang, 2016. "Strategic Enforcement, Intellectual Property Rights, And Contractual R&D," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1904-1917, October.

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    More about this item

    Keywords

    Patents; R&D incentive; Tournament effect; Licensing;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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