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Innovation Fertility and Patent Design

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  • Hopenhayn, H.A.
  • Mitchell, M.F.

Abstract

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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Bibliographic Info

Paper provided by Minnesota - Center for Economic Research in its series Papers with number 303.

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Length: 36 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:minner:303

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Postal: UNIVERSITY OF MINNESOTA, CENTER FOR ECONOMIC RESEARCH, DEPARTMENT OF ECONOMICS, MINNEAPOLIS MINNESOTA 35455 U.S.A.
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Fax: (612)624-0209
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Web page: http://www.econ.umn.edu/
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Keywords: PATENTS ; INNOVATIONS;

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References

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  1. Gilbert, R. & Shapiro, C., 1988. "Optimal Patent Length And Breadth," Papers 28, Princeton, Woodrow Wilson School - Discussion Paper.
  2. Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-84, July.
  3. Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, 03.
  4. Klemperer, Paul, 1990. "How Broad Should the Scope of Patent Protection Be?," CEPR Discussion Papers 392, C.E.P.R. Discussion Papers.
  5. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
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Cited by:
  1. Keely,L.C., 2000. "Using patents in growth models," Working papers 30, Wisconsin Madison - Social Systems.
  2. Fernando Leiva B., 2006. "Pricing Patents through Citations," 2006 Meeting Papers 834, Society for Economic Dynamics.
  3. Nancy Gallini & Suzanne Scotchmer, 2003. "Intellectual Property: When is it the Best Incentive System?," Levine's Working Paper Archive 618897000000000532, David K. Levine.
  4. Palomeras, Neus, 2003. "Sleeping patents: any reason to wake up?," IESE Research Papers D/506, IESE Business School.
  5. Samuel Kortum, 2004. "An R&D Roundtable," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(4), pages 349-363.
  6. Jaffe, Adam B., 2000. "The U.S. patent system in transition: policy innovation and the innovation process," Research Policy, Elsevier, vol. 29(4-5), pages 531-557, April.
  7. Maurer, Stephen M & Scotchmer, Suzanne, 2002. "The Independent Invention Defence in Intellectual Property," Economica, London School of Economics and Political Science, vol. 69(276), pages 535-47, November.

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