Do broad patents deter research cooperation ?
The authors develop a theoretical model where two competing firms need access to basic knowledge that only one firm owns. They determine the impact of an imperfect property right on the incentive to transfer that knowledge to the competitor. They compare these transfer strategies. (i) Patenting may lead to litigation costs that depend on the competition toughness. (ii) Keeping the knowledge secret involves no licence revenue but ensures a monopoly profit. (iii) The firm can also coooperate with the competitor and thereby avoids litigation. They show that whenever competition between both firms is low, making patentable basic knowledge promotes knowledge transfer through research cooperation.
|Date of creation:||2009|
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- Joseph Farrell & Carl Shapiro, 2008.
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- Michel Trommetter, 2005.
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156806, Institut National de la Recherche Agronomique, France.
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- Sudipto Bhattacharya & Sergei Guriev, 2006.
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- Sudipto Bhattacharya & Sergei Guriev, 2005. "Patents vs trade secrets: knowledge licensing and spillover," LSE Research Online Documents on Economics 444, London School of Economics and Political Science, LSE Library.
- d' Aspremont, Claude & Bhattacharya, Sudipto & Gerard-Varet, Louis-Andre, 2000.
"Bargaining and Sharing Innovative Knowledge,"
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Wiley Blackwell, vol. 67(2), pages 255-71, April.
- Trommetter, M., 2008. "Intellectual property rights in agricultural and agro-food biotechnologies to 2030 (© OECD International Futures Programme)," Working Papers 200805, Grenoble Applied Economics Laboratory (GAEL).
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