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Optimal Patentability Requirements with Fragmented Property Rights

Author

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  • Vincenzo Denicolò

    (Università di Bologna)

  • Christine Halmenschlager

    (University Paris II)

Abstract

We study the effect of the fragmentation of intellectual property rights on optimal patent design. The major finding is that when several complementary innovative components must be assembled to operate a new technology, the patentability requirements should be stronger than in the case of stand-alone innovation. This reduces the fragmentation of intellectual property, which is socially costly. However, to preserve the incentives to innovate, if a patent is granted the strength of protection should be generally higher than in the stand-alone case.

Suggested Citation

  • Vincenzo Denicolò & Christine Halmenschlager, 2010. "Optimal Patentability Requirements with Fragmented Property Rights," Working Papers 2010.134, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2010.1343
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    Cited by:

    1. Denicolò, Vincenzo & Halmenschlager, Christine, 2012. "Optimal patentability requirements with complementary innovations," European Economic Review, Elsevier, vol. 56(2), pages 190-204.

    More about this item

    Keywords

    Intellectual Property Rights; Fragmentation; Patent Requirements;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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