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Reinforcing the patent system? Patent fencing, knowledge diffusion and welfare

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  • Murat YILDIZOGLU (E3i-IFReDE-GRES)

Abstract

This article develops an evolutionary model of industry dynamics in order to carry out a richer theoretical analysis of the consequences of a stronger patent system. This model explicitly takes into account the potentially positive effects of the patents: Publication of patents participates to the building of a collective knowledge stock on which the innovations can rely, and dropped patents can provide a source of technological progress for firms that are lagging behind the leaders of the industry. These dimensions of the patent system are used to question the negative results of Vallée & Yildizoglu (2006). The main results of the new model show that these positive effects do not counterbalance the negative effects of a stronger patent system on social welfare and global technological progress, even if it is a source of better protection and higher profits for the firms.

Suggested Citation

  • Murat YILDIZOGLU (E3i-IFReDE-GRES), 2006. "Reinforcing the patent system? Patent fencing, knowledge diffusion and welfare," Cahiers du GRES (2002-2009) 2006-23, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2006-23
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    File URL: http://cahiersdugres.u-bordeaux4.fr/2006/2006-23.pdf
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    References listed on IDEAS

    as
    1. Adam B. Jaffe & Josh Lerner, 2006. "Innovation and its Discontents," NBER Chapters,in: Innovation Policy and the Economy, Volume 6, pages 27-66 National Bureau of Economic Research, Inc.
    2. Nancy Gallini & Suzanne Scotchmer, 2002. "Intellectual Property: When Is It the Best Incentive System?," NBER Chapters,in: Innovation Policy and the Economy, Volume 2, pages 51-78 National Bureau of Economic Research, Inc.
    3. Thomas Vallée & Murat YıLdızoğlu, 2006. "Social and technological efficiency of patent systems," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 189-206, April.
    4. Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
    5. Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Innovation; Technical progress; Patent system; Intellectual property rights (IPR); Technology policy; Technological regimes;

    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
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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