Patent Policy, Patent Pools, And The Accumulation Of Claims In Sequential Innovation
AbstractWe present a dynamic model where the accumulation of patents generates an increasing number of claims on sequential innovation. We compare innovation activity under three regimes patents,no-patents,andpatentpoolsand ﬁnd that none of them can reach the ﬁrst best. We ﬁnd that the ﬁrst best can be reached through a decentralized tax-subsidy mechanism, by which innovators receive a subsidy when they innovate, and are taxed with subsequent innovations. This ﬁnding implies that optimal transfers work in the exact opposite way as traditional patents. Finally, we consider patents of ﬁnite duration and determine the optimal patent length.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 523.
Date of creation: Nov 2010
Date of revision:
Sequential Innovation; Patent Policy; Patent Pools; Anticommons; Double Marginalization; Complementary Monopoly;
Other versions of this item:
- Gastón Llanes & Stefano Trento, 2012. "Patent policy, patent pools, and the accumulation of claims in sequential innovation," Economic Theory, Springer, vol. 50(3), pages 703-725, August.
- Gastón Llanes & Stefano Trento, 2010. "Patent Policy, Patent Pools, And The Accumulation Of Claims In Sequential Innovation," UFAE and IAE Working Papers 856.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Gaston Llanes & Stefano Trento, 2009. "Patent policy, patent pools, and the accumulation of claims in sequential innovation," Harvard Business School Working Papers 10-005, Harvard Business School.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
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