It may be advantageous to provide a variety of kinds of patent protection to heterogenous innovations. Innovations which benefit society largely through their use as building blocks to future inventions may require a different scope of protection in order to be encouraged, sine expected profits are often decresing in a products usefulness to others when the others are competitors. We model the problem of designing an optimal patent menu when the fertility of an innovation in generating more innovations cannot be observed when the patent is granted and characterize the optimal menu when breadth is a choice variable of the patent authority.
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Paper provided by Minnesota - Center for Economic Research in its series Papers with number
303.
Length: 36 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:minner:303
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Find related papers by JEL classification: O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
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