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Reinforcing the patent system? Patent fencing, knowledge diffusion and welfare

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  • Murat YILDIZOGLU (E3i-IFReDE-GRES)

Abstract

This article develops an evolutionary model of industry dynamics in order to carry out a richer theoretical analysis of the consequences of a stronger patent system. This model explicitly takes into account the potentially positive effects of the patents: Publication of patents participates to the building of a collective knowledge stock on which the innovations can rely, and dropped patents can provide a source of technological progress for firms that are lagging behind the leaders of the industry. These dimensions of the patent system are used to question the negative results of Vallée & Yildizoglu (2006). The main results of the new model show that these positive effects do not counterbalance the negative effects of a stronger patent system on social welfare and global technological progress, even if it is a source of better protection and higher profits for the firms.

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File URL: http://cahiersdugres.u-bordeaux4.fr/2006/2006-23.pdf
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Bibliographic Info

Paper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES with number 2006-23.

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Date of creation: 2006
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Handle: RePEc:grs:wpegrs:2006-23

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Web page: http://gres.u-bordeaux4.fr/
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Related research

Keywords: Innovation; Technical progress; Patent system; Intellectual property rights (IPR); Technology policy; Technological regimes;

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  1. Nancy Gallini & Suzanne Scotchmer, 2003. "Intellectual Property: When is it the Best Incentive System?," Levine's Working Paper Archive 618897000000000532, David K. Levine.
  2. 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.
  3. Thomas VALLEE (LEN-C3E) & Murat YILDIZOGLU (E3i, IFReDE-GRES), 2004. "Social and Technological Efficiency of Patent Systems," Cahiers du GRES 2004-11, Groupement de Recherches Economiques et Sociales.
  4. Adam B. Jaffe & Josh Lerner, 2006. "Innovation and its Discontents," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 27-66 National Bureau of Economic Research, Inc.
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