Do broad patents deter research cooperation ?
AbstractThe authors develop a theoretical model where two competing firms need access to basic knowledge that only one firm owns. They determine the impact of an imperfect property right on the incentive to transfer that knowledge to the competitor. They compare these transfer strategies. (i) Patenting may lead to litigation costs that depend on the competition toughness. (ii) Keeping the knowledge secret involves no licence revenue but ensures a monopoly profit. (iii) The firm can also coooperate with the competitor and thereby avoids litigation. They show that whenever competition between both firms is low, making patentable basic knowledge promotes knowledge transfer through research cooperation.
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Bibliographic InfoPaper provided by Grenoble Applied Economics Laboratory (GAEL) in its series Working Papers with number 200904.
Date of creation: 2009
Date of revision:
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INNOVATION; SECRET; PATENT; cooperation; KNOWLEDGE SHARING;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-11 (All new papers)
- NEP-COM-2009-09-11 (Industrial Competition)
- NEP-INO-2009-09-11 (Innovation)
- NEP-IPR-2009-09-11 (Intellectual Property Rights)
- NEP-TID-2009-09-11 (Technology & Industrial Dynamics)
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.:
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