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On the optimal patent policy

Author

Listed:
  • Tuomas Takalo

    (Department of Economic and FPPE, University of Helsinki, Finland)

Abstract

Numerous attempts have been made to identify the optimal mix of patent breadth and patent life. Unfortunately, the range of contradictory results reported in literature is rather impressive. The aim of this note is to develop a very stylised model that encompasses a variety of different findings, and to derive a general rule for the optimal patent policy.

Suggested Citation

  • Tuomas Takalo, 2001. "On the optimal patent policy," Finnish Economic Papers, Finnish Economic Association, vol. 14(1), pages 33-40, Spring.
    • Handle: RePEc:fep:journl:v:14:y:2001:i:1:p:33-40
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    References listed on IDEAS

    as
    1. Wright, Donald J., 1999. "Optimal patent breadth and length with costly imitation," International Journal of Industrial Organization, Elsevier, vol. 17(3), pages 419-436, April.
    2. Tuomas Takalo, 1998. "Innovation and imitation under imperfect patent protection," Journal of Economics, Springer, vol. 67(3), pages 229-241, October.
    3. Nancy T. Gallini, 1992. "Patent Policy and Costly Imitation," RAND Journal of Economics, The RAND Corporation, vol. 23(1), pages 52-63, Spring.
    4. Richard Gilbert & Carl Shapiro, 1990. "Optimal Patent Length and Breadth," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 106-112, Spring.
    5. Tandon, Pankaj, 1982. "Optimal Patents with Compulsory Licensing," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 470-486, June.
    6. Carmen Matutes & Pierre Regibeau & Katharine Rockett, 1996. "Optimal Patent Design and the Diffusion of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 60-83, Spring.
    7. Waterson, Michael, 1990. "The Economics of Product Patents," American Economic Review, American Economic Association, vol. 80(4), pages 860-869, September.
    8. Denicolo, Vincenzo, 1996. "Patent Races and Optimal Patent Breadth and Length," Journal of Industrial Economics, Wiley Blackwell, vol. 44(3), pages 249-265, September.
    9. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Tatsuro Iwaisako & Koichi Futagami, 2013. "Patent protection, capital accumulation, and economic growth," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(2), pages 631-668, March.
    2. Bergin, James, 2018. "Patent policy, investment and social welfare," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 439-458.
    3. Yuan, Michael Y., 2005. "Does decrease in copying cost support copyright term extension?," Information Economics and Policy, Elsevier, vol. 17(4), pages 471-494, October.
    4. Hussinger, Katrin & Grimpe, Christoph, 2007. "Firm Acquisitions and Technology Strategy: Corporate versus Private Equity Investors," ZEW Discussion Papers 07-066, ZEW - Leibniz Centre for European Economic Research.
    5. Dietmar Harhoff, 2006. "Patente - Segen oder Fluch für Innovationen?," Schmalenbach Journal of Business Research, Springer, vol. 58(54), pages 86-109, January.
    6. repec:zbw:bofism:2009_041 is not listed on IDEAS
    7. Grönqvist, Charlotta, 2009. "Empirical studies on the private value of Finnish patents," Scientific Monographs, Bank of Finland, number 2009_041.
    8. Massoud Khazabi & Nguyen Van Quyen, 2017. "The search for new drugs: a theory of R&D in the pharmaceutical industry," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 44(5), pages 690-726, October.
    9. Meller Leandro Matías, 2023. "Incentives in R&D markets: Analysing the relation between the elasticities of patent values and the optimality of patent policy," Asociación Argentina de Economía Política: Working Papers 4669, Asociación Argentina de Economía Política.
    10. Frederik Schmidt, 2008. "Innovation contests with temporary and endogenous monopoly rents," Review of Economic Design, Springer;Society for Economic Design, vol. 12(3), pages 189-208, September.
    11. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978.
    12. Julio R. Robledo, 2005. "Strategic patents and asymmetric litigation costs as entry deterrence instruments," Economics Bulletin, AccessEcon, vol. 15(2), pages 1-9.
    13. Michael Yuan, 2006. "A better copyright system? comparing welfare of indefinitely renewable copyright versus fixed-length copyright," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(6), pages 519-542.
    14. Grönqvist, Charlotta, 2009. "Empirical studies on the private value of Finnish patents," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number sm2009_041.

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    More about this item

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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