Are Intellectual Property Rights Detrimental to Innovation?
AbstractIntellectual property rights are legal constraints that limit entry in industries where incumbents are innovators. The set of legal constraints is the same for all industries, without considering that the externalities created by entry are not necessarily negative for the incumbent or that the incumbent's R&D expenditures can be detrimental to entrants. We show that one unique set of legal rules can foster innovation and increase total R&D expenditures in some industries and be detrimental in others. The model is illustrated by case studies from the information and communication technologies industry (software, hardware, music and videogame industries).
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12267.
Date of creation: 25 Mar 2005
Date of revision:
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innovation; spillover; leadership; R&D regulation;
Other versions of this item:
- Claude Crampes & Corinne Langinier, 2009. "Are Intellectual Property Rights Detrimental to Innovation?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(3), pages 249-268.
- K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-03 (All new papers)
- NEP-COM-2005-04-03 (Industrial Competition)
- NEP-INO-2005-04-03 (Innovation)
- NEP-REG-2005-04-03 (Regulation)
- NEP-TID-2005-04-03 (Technology & Industrial Dynamics)
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