Appropriability and Incentives with Complementary Innovations
AbstractThis article analyzes the effects on ex ante incentives to invest in the development of complementary innovations of two alternative appropriability strategies: a strategy of exclusion of third parties from access (through active enforcement of IPRs or technical means) vis-a-vis an openness strategy, i.e. an ex-ante commitment not to exclude. Assuming that the complementary innovations constitute a common input and that agents make complementary investments in its private exploitation, we find that, when complementarities are sufficiently strong, a commitment to openness may provide greater incentives than an exclusion strategy. The theoretical framework is used to provide an interpretation of Open Source Software licenses and the “Open Science” system.
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Bibliographic InfoPaper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 603.
Date of creation: Nov 2010
Date of revision:
incentives to innovation; complementarity; intellectual property rights; open source software; open science.;
Find related papers by JEL classification:
- L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
- NEP-INO-2010-12-11 (Innovation)
- NEP-IPR-2010-12-11 (Intellectual Property Rights)
- NEP-TID-2010-12-11 (Technology & Industrial Dynamics)
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