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Patent law and complementary innovations

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  • Ménière, Yann

Abstract

This paper explores which patent policy should be applied to complementary innovations that are aggregated into broader technologies. I compare a setting in which complementary innovations must be bundled prior to patenting, with a second setting in which they can be patented separately. The first setting can improve static efficiency by avoiding the costs resulting from the scattering of complementary patents. But it also limits the disclosure of small innovations, which may lead to inefficient R&D cost duplications. A model capturing these effects shows that patenting complementary innovations separately is not efficient when innovations can be developed rapidly. This result justifies the enforcement of a severe "inventive step" or "non-obviousness" requirement in sectors where complementary innovations are frequent.

Suggested Citation

  • Ménière, Yann, 2008. "Patent law and complementary innovations," European Economic Review, Elsevier, vol. 52(7), pages 1125-1139, October.
    • Handle: RePEc:eee:eecrev:v:52:y:2008:i:7:p:1125-1139
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    References listed on IDEAS

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    Cited by:

    1. Zonglai Kou & Patrick Rey & Tong Wang, 2013. "Non-Obviousness and Screening," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 700-732, September.
    2. Wipusanawan, Chayanin, 2023. "Standard-essential patents, innovation, and competition," Other publications TiSEM 292e319a-9e6a-4465-8f8f-7, Tilburg University, School of Economics and Management.
    3. Chen, Yijuan, 2012. "Innovation frequency of durable complementary goods," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 407-421.
    4. Massimo D'Antoni & Maria Alessandra Rossi, 2014. "Appropriability and Incentives with Complementary Innovations," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(1), pages 103-124, March.
    5. Annalisa Biagi & Vincenzo Denicolò, 2014. "Timing of Discovery and the Division of Profit With Complementary Innovations," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(1), pages 89-102, March.
    6. Denicolò, Vincenzo & Halmenschlager, Christine, 2012. "Optimal patentability requirements with complementary innovations," European Economic Review, Elsevier, vol. 56(2), pages 190-204.
    7. Gaétan de Rassenfosse & Emilio Raiteri & Rudi Bekkers, 2023. "Discrimination in the Patent System: Evidence from Standard-Essential Patents," Journal of Law and Economics, University of Chicago Press, vol. 66(4), pages 739-763.

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