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Entrepreneurial Commercialization Choices and the Interaction between IPR and Competition Policy

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Author Info

  • Gans , Joshua

    (Rotman School of Management)

  • Persson, Lars

    ()
    (Institutet för näringslivsforskning)

Abstract

This paper examines the interaction between intellectual property protection and competition policy on the choice of entrepreneurs with respect to commercialization as well as the rate of innovation. We find that stronger intellectual property protection makes it more likely that entrepreneurs will commercialize by cooperating with incumbents rather than competing with them. Consequently, we demonstrate that competition policy has a clearer role in promoting a higher rate of innovation in that event. Hence, we identify one reason why the strength of the two policies may be complements from the perspective of increasing the rate of entrepreneurial innovation.

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Bibliographic Info

Paper provided by Swedish Entrepreneurship Forum in its series Working Papers with number 2012:16.

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Length: 24 pages
Date of creation: 09 Aug 2013
Date of revision:
Handle: RePEc:hhs:entfor:2012_016

Contact details of provider:
Postal: Swedish Entrepreneurship Forum, Örebro University, SE-70182 ÖREBRO, Sweden
Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/

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Keywords: Entrepreneurs; innovation; commercialization; intellectual property law; competition law;

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  1. Braunerhjelm, Pontus & Svensson, Roger, 2007. "The Inventor’s Role: Was Schumpeter Right?," Working Paper Series, Research Institute of Industrial Economics 690, Research Institute of Industrial Economics.
  2. Norbäck, Pehr-Johan & Persson, Lars, 2006. "Entrepreneurial Innovations, Competition and Competition Policy," Working Paper Series, Research Institute of Industrial Economics 670, Research Institute of Industrial Economics, revised 05 May 2010.
  3. Salant, Stephen W, 1984. "Preemptive Patenting and the Persistence of Monopoly: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 74(1), pages 247-50, March.
  4. Boone, Jan, 2000. "Competition," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2636, C.E.P.R. Discussion Papers.
  5. Nancy T. Gallini & Ralph A. Winter, 1985. "Licensing in the Theory of Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 237-252, Summer.
  6. Granstrand, Ove & Sjolander, Soren, 1990. "The acquisition of technology and small firms by large firms," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 13(3), pages 367-386, June.
  7. Granstrand, Ove & Sjölander, Sören, 1990. "The Acquisition of Technology and Small Firms by Large Firms," Working Paper Series, Research Institute of Industrial Economics 213, Research Institute of Industrial Economics.
  8. Anton, James J & Yao, Dennis A, 1994. "Expropriation and Inventions: Appropriable Rents in the Absence of Property Rights," American Economic Review, American Economic Association, American Economic Association, vol. 84(1), pages 190-209, March.
  9. Arora, Ashish & Fosfuri, Andrea & Gambardella, Alfonso, 2001. "Markets for Technology and Their Implications for Corporate Strategy," Industrial and Corporate Change, Oxford University Press, vol. 10(2), pages 419-51, June.
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