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Patents, Trade Secrets and the Correlation Among R&D Projects

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  • Bulut, Harun
  • Moschini, GianCarlo

Abstract

In patent race models, firms' noncooperatively chosen research projects typically display too much correlation. But when there are multiple intellectual property rights protection instruments, we find that the paths chosen in an R&D race can move towards the social optimum.

Suggested Citation

  • Bulut, Harun & Moschini, GianCarlo, 2006. "Patents, Trade Secrets and the Correlation Among R&D Projects," Staff General Research Papers Archive 12726, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:12726
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    References listed on IDEAS

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    1. Dasgupta, Partha & Maskin, Eric, 1987. "The Simple Economics of Research Portfolios," Economic Journal, Royal Economic Society, vol. 97(387), pages 581-595, September.
    2. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    3. Vincenzo Denicolo & Luigi Alberto Franzoni, 2004. "Patents, Secrets, and the First-Inventor Defense," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(3), pages 517-538, September.
    4. Tor Klette & David de Meza, 1986. "Is the Market Biased Against Risky R&D?," RAND Journal of Economics, The RAND Corporation, pages 133-139.
    5. Harun Bulut & GianCarlo Moschini, 2005. "Parallel Research, Multiple Intellectual Property Right Protection Instruments, and the Correlation among R&D Projects," Center for Agricultural and Rural Development (CARD) Publications 05-wp404, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. James J. Anton & Dennis A. Yao, 2004. "Little Patents and Big Secrets: Managing Intellectual Property," RAND Journal of Economics, The RAND Corporation, pages 1-22.
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    Cited by:

    1. Safarzynska, Karolina & van den Bergh, Jeroen C.J.M., 2011. "Beyond replicator dynamics: Innovation-selection dynamics and optimal diversity," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 229-245, May.
    2. Bulut, Harun & Collins, Keith & Zacharias, Thomas P. & Schnapp, Frank, 2011. "Why Do Producers Choose Individual or Area Insurance Protection?," NCIS Special Reports 160545, National Crop Insurance Services (NCIS).

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