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Patentability, industry structure, and innovation Author info | Abstract | Publisher info | Download info | Related research | Statistics Robert M. Hunt
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To qualify for a patent, an invention must be new, useful, and nonobvious. This paper presents a model of sequential innovation in which industry structure is endogenous and a standard of patentability determines the proportion of all inventions that qualify for protection. There is a unique patentability standard, or inventive step, that maximizes the rate of innovation by maximizing the number of firms engaged in R&D. Surprisingly, this standard is more stringent for industries disposed to innovate rapidly. If a single standard is applied to heterogeneous industries, it will encourage entry, and therefore innovation, in some industries while discouraging it in others. The model suggest a number of important implications for patent policy.
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Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number
01-13.
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Keywords: Patents ; Industries ; Other versions of this item:
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Full
references Cited by : (explanations , 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.)
Robert M. Hunt, 2006.
"When Do More Patents Reduce R&D? ,"
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Other versions: Robert M. Hunt, 2007.
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Working Papers
07-6, Federal Reserve Bank of Philadelphia.
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James Bessen & Eric Maskin, 2006.
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Economics Working Papers
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Other versions: Moschini, GianCarlo & Yerokhin, Oleg, 2006.
"Patents, Research Exemption, and the Incentive for Sequential Innovation ,"
Staff General Research Papers
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[Downloadable!]
Other versions: Fershtman, Chaim & Markovich, Sarit, 2006.
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Nisvan Erkal & Suzanne Scotchmer, 2008.
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Guido Cozzi & Silvia Galli, 2009.
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Bernard Caillaud & Anne Duchêne, 2009.
"Patent Office in innovation policy: Nobody's perfect ,"
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Guido Cozzi & Silvia Galli, 2009.
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