Knowledge Disclosure as Intellectual Property Rights Protection
AbstractWe consider the problem of an inventor who discloses knowledge under the threat of a rival who may patent a competing idea. Disclosure diminishes the probability that the rival has of receiving a patent (legal externality) but it also decreases the rivalâs marginal R&D cost (knowledge externality). Our results reveal that: (i) when the knowledge externality is âlargeâ (âsmallâ) relative to the legal one, an increase (decrease) in the patentability standard leads to higher disclosure and promotes R&D and (ii) if subsequent research creates positive external effects, the patentability standard should be set to promote further disclosure and R&D in equilibrium. The impact on the equilibrium configuration of changes in market profits is also examined.
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Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 618897000000000550.
Date of creation: 31 Oct 2003
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Other versions of this item:
- Ponce, Carlos J., 2011. "Knowledge disclosure as intellectual property rights protection," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 418-434.
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-03 (All new papers)
- NEP-COM-2003-11-03 (Industrial Competition)
- NEP-INO-2003-11-03 (Innovation)
- NEP-LAW-2003-11-03 (Law & Economics)
- NEP-MFD-2003-11-03 (Microfinance)
- NEP-TID-2003-11-03 (Technology & Industrial Dynamics)
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