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Technology Diffusion with Learning Spillovers: Patent versus Free Access

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Author Info

  • Matthieu Glachant

    (CERNA - Centre d'économie industrielle - Mines ParisTech)

  • Yann Ménière

    ()
    (CERNA - Centre d'économie industrielle - Mines ParisTech)

Abstract

The paper analyzes the interplay between technology diffusion and patent law. We develop a dynamic model where initial adoptions generate learning spillovers that reduce the cost of subsequent adoptions. In this setting, we contrast technology diffusion paths under competitive supply, subsidized adoption and patent protection. Competitive supply entails various coordination failures that cannot be fully fixed through a public subsidy. We show that a patent holder can internalize externalities more efficiently, insofar as patent protection is fully effective. By contrast, fully competitive supply may be more efficient when patent enforcement is imperfect.

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File URL: http://hal-ensmp.archives-ouvertes.fr/docs/00/50/87/95/PDF/Cerna_WP_2010-14.pdf
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Bibliographic Info

Paper provided by HAL in its series Post-Print with number hal-00508795.

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Date of creation: 2010
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Handle: RePEc:hal:journl:hal-00508795

Note: View the original document on HAL open archive server: http://hal-ensmp.archives-ouvertes.fr/hal-00508795/en/
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Related research

Keywords: Technology diffusion; intellectual property rights; price discrimination; learning spillovers;

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Cited by:
  1. Rey, Patrick & Salant, David, 2012. "Abuse of dominance and licensing of intellectual property," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 518-527.
  2. Katharine Rockett, 2009. "Property Rights and Invention," Economics Discussion Papers 663, University of Essex, Department of Economics.
  3. Rockett, Katharine, 2012. "Perspectives on the knowledge-based society: An introduction to the special issue," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(35), pages =1-22.

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