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Intellectual property rights in a quality-ladder model with persistent leadership

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  • Christian Kiedaisch

Abstract

This article analyzes the effects of intellectual property rights in a quality-ladder model in which incumbent firms preemptively innovate in order to keep their position of leadership. Unlike in models with leapfrogging, granting non-expiring forward protection reduces the rate of innovation and imposing a non-obviousness requirement reduces R&D spending. It is shown that full protection against imitation, granted independently of the size of the lead, maximizes the average innovation rate.

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File URL: http://www.econ.uzh.ch/static/wp/econwp078.pdf
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Bibliographic Info

Paper provided by Department of Economics - University of Zurich in its series ECON - Working Papers with number 078.

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Date of creation: May 2012
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Handle: RePEc:zur:econwp:078

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Related research

Keywords: Intellectual property rights; persistent leadership; cumulative innovation; preemption; forward protection; non-obviousness requirement; patent policy;

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  1. Angus Chu, 2009. "Effects of blocking patents on R&D: a quantitative DGE analysis," Journal of Economic Growth, Springer, vol. 14(1), pages 55-78, March.
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Cited by:
  1. Kiedaisch, Christian & Grafenhofer, Dominik, 2013. "Taste for Exclusivity and Intellectual Property Rights," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80017, Verein für Socialpolitik / German Economic Association.

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