Appropriability, Patents, and Rates of Innovation in Complex Products Industries
AbstractThe economic theory of intellectual property rights is based on a rather narrow view of both competition and technological knowledge. We suggest some ways of enriching this framework with a more empirically grounded view of both and, by means of a simulation model, we analyze the impact of different property right regimes on the dynamics of a complex product industry, that is an industry where products are complex multi-component objects and competition takes place mainly through differentiation and component innovation. We show that, as the complexity of the product spaces increases, stronger patent regimes yield lower rates of innovation, lower product quality and lower consumers' welfare. localized ones.
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Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2009/05.
Date of creation: 07 Apr 2009
Date of revision:
patents; appropriability of innovation; complex product industries; industrial dynamics;
Other versions of this item:
- Luigi Marengo & Corrado Pasquali & Marco Valente & Giovanni Dosi, 2012. "Appropriability, patents, and rates of innovation in complex products industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 753-773, November.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-25 (All new papers)
- NEP-COM-2009-04-25 (Industrial Competition)
- NEP-CSE-2009-04-25 (Economics of Strategic Management)
- NEP-INO-2009-04-25 (Innovation)
- NEP-IPR-2009-04-25 (Intellectual Property Rights)
- NEP-MIC-2009-04-25 (Microeconomics)
- NEP-TID-2009-04-25 (Technology & Industrial Dynamics)
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