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The trade-of intellectual property rights reconsidered: technological knowledge as an essential facility

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Author Info
Antonelli Cristiano () (University of Turin)

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Abstract

Intellectual property rights have a twin effect on the economic system. On the one hand they favor the introdution of new technological knowledge. On the other they reduce competition and eventually may limit the rate of introduction of new knowledge. A trade-off takes place between such positive and negative effects. The application to the economics of knowledge of the notions of essential facility and liability rule can correct the balance of the trade-off and contribute the rate of advance of technological knowledge and its effective use in the economic system. The tuning of exc1usive property rights makes it possible to minimize knowledge rents and favor the dissemination and use of knowledge in the economic system taking advantage of its intrinsic cumulability and complementarity.

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File URL: http://www.de.unito.it/web/member/segreteria/WP/Momigliano/2005/9_WP_Momigliano.pdf
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Paper provided by University of Turin in its series Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo Alberto. WP series with number 200509.

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Length: 19 pages
Date of creation: Sep 2005
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Handle: RePEc:uto:labeco:200509

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  1. Kingston, William, 2001. "Innovation needs patents reform," Research Policy, Elsevier, vol. 30(3), pages 403-423, March. [Downloadable!] (restricted)
  2. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April. [Downloadable!] (restricted)
  3. Mazzoleni, Roberto & Nelson, Richard R., 1998. "The benefits and costs of strong patent protection: a contribution to the current debate," Research Policy, Elsevier, vol. 27(3), pages 273-284, July. [Downloadable!] (restricted)
  4. Antonelli Cristiano, 2005. "Models of knowledge and systems of governance," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200501, University of Turin. [Downloadable!]
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  5. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc. [Downloadable!]
  6. Shavell, Steven & van Ypersele, Tanguy, 2001. "Rewards versus Intellectual Property Rights," Journal of Law & Economics, University of Chicago Press, vol. 44(2), pages 525-47, October.
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