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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- 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.
- Sudipto Bhattacharya & Sergei Guriev, 2006. "Patents vs. Trade Secrets: Knowledge Licensing and Spillover," Journal of the European Economic Association, MIT Press, vol. 4(6), pages 1112-1147, December.
- Sudipto Bhattacharya & Sergei Guriev, 2004. "Patents vs Trade Secrets: Knowledge Licensing and Spillover," Working Papers w0064, Center for Economic and Financial Research (CEFIR), revised Feb 2006.
- Michel Trommetter, 2005.
"Biodiversity and international stakes : a question of access,"
156806, Institut National de la Recherche Agronomique, France.
- Trommetter, Michel, 2005. "Biodiversity and international stakes: A question of access," Ecological Economics, Elsevier, vol. 53(4), pages 573-583, June.
- Trommetter, M., 2004. "Biodiversity and international stakes : a question of access," Working Papers 200418, Grenoble Applied Economics Laboratory (GAEL).
- Llobet, Gerard, 2003. "Patent litigation when innovation is cumulative," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1135-1157, October.
- d' Aspremont, Claude & Bhattacharya, Sudipto & Gerard-Varet, Louis-Andre, 2000.
"Bargaining and Sharing Innovative Knowledge,"
Review of Economic Studies,
Wiley Blackwell, vol. 67(2), pages 255-71, April.
- Joseph Farrell & Carl Shapiro, 2008.
"How Strong Are Weak Patents?,"
American Economic Review,
American Economic Association, vol. 98(4), pages 1347-69, September.
- 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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