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Economics of Patents: An Overview, The Author info | Abstract | Publisher info | Download info | Related research | Statistics Corinne Langinier
GianCarlo Moschini () (Center for Agricultural and Rural Development (CARD) )
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In this paper, we review the economic effects of intellectual property rights and specifically address the economics of the patent system. The production and dissemination of new knowledge is fraught with market failures because knowledge is a public good. Patents provide a second-best solution to the resulting appropriability problem. We review the main benefits and costs of the patent system, focusing on the role that patents play in providing incentives for innovation, in promoting the dissemination of knowledge, and in helping technology transfer and commercialization of new technology. From a more normative perspective, we address the questions of what the features of an optimal patent system are and whether the patent system is socially desirable. We examine the problem of the optimal length and scope of patent protection, both for the case of a single innovation and for the richer case of cumulative innovations. Finally, we review the issues related to how the patent system influences the market structure and research and development investments.
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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number
02-wp293.
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Date of creation: Feb 2002Date of revision:
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Moschini, Giancarlo, 2003.
"Intellectual Property Rights and the World Trade Organization: Retrospect and Prospects ,"
Staff General Research Papers
10442, Iowa State University, Department of Economics.
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Other versions: Kartin Hussinger, 2005.
"Is Silence Golden? Patents versus Secrecy at the Firm Level ,"
Discussion Papers
37, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
[Downloadable!]
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Hussinger, Katrin, 2004.
"Is Silence Golden? : Patents versus Secrecy at the Firm Level ,"
ZEW Discussion Papers
04-78, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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[Downloadable!] (restricted) Bulut, Harun & Moschini, GianCarlo, 2005.
"Parallel Research, Multiple Intellectual Property Right Protection Instruments, and the Correlation among R&D Projects ,"
Staff General Research Papers
12415, Iowa State University, Department of Economics.
[Downloadable!]
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