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STRATEGIC INFORMATION DISCLOSURE AND COMPETITION FOR AN IMPERFECTLY PROTECTED INNOVATION -super-

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  • JOS JANSEN

Abstract

The imperfect appropriability of revenues from innovation affects the incentives of firms to invest, and to disclose information about their innovative productivity. It creates a free-rider effect in the competition for the innovation that countervails the familiar business-stealing effect. Moreover, it affects the disclosure incentives such that full disclosure emerges for extreme revenue spillovers (e.g., full protection and no protection of intellectual property), but either partial disclosure or full concealment emerges for intermediate spillovers. I analyze the implications of imperfect appropriability and strategic disclosure for the firms' profits and the probability of innovation. Copyright 2010 The Author. Journal compilation 2010 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

Suggested Citation

  • Jos Jansen, 2010. "STRATEGIC INFORMATION DISCLOSURE AND COMPETITION FOR AN IMPERFECTLY PROTECTED INNOVATION -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 349-372, June.
  • Handle: RePEc:bla:jindec:v:58:y:2010:i:2:p:349-372
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    Cited by:

    1. Aditi Sengupta, 2013. "Incentive to Reduce Cost under Incomplete Information," Auburn Economics Working Paper Series auwp2013-10, Department of Economics, Auburn University.
    2. repec:bla:ecinqu:v:55:y:2017:i:2:p:806-824 is not listed on IDEAS
    3. Cho, Myeonghwan & Jun, Byung-hill, 2013. "Information sharing with competition," Economics Letters, Elsevier, vol. 119(1), pages 81-84.
    4. repec:kap:qmktec:v:15:y:2017:i:3:d:10.1007_s11129-017-9186-9 is not listed on IDEAS

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