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  • Mário Alexandre Patrício Martins da Silva

    () (Faculdade de Economia da Universidade do Porto)


In this paper, we explain the analytics of a particular type of mechanism of Open Innovation (OI), namely the management of non-pecuniary exchange of information, and address the relationship between Intellectual Property Rights (IPRs), particularly patent rights, and OI using a static game-theoretic setting of Research and Development competition. We show that, surprisingly perhaps, a rise in the strength of patent protection induces the free sharing and dissemination of technological information and other contributions to the OI development of innovations. Conversely, a fall in the strength of the patent system induces the exercise of traditional IPRs by innovative firms to protect their intellectual assets.

Suggested Citation

  • Mário Alexandre Patrício Martins da Silva, 2017. "OPEN INNOVATION AND IPRs: MUTUALLY INCOMPATIBLE OR COMPLEMENTARY INSTITUTIONS?," FEP Working Papers 596, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:596

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    References listed on IDEAS

    1. Alan G. Isaac & Walter G. Park, 2004. "On Intellectual Property Rights: Patents versus Free and Open Development," Chapters, in: Enrico Colombatto (ed.),The Elgar Companion to the Economics of Property Rights, chapter 18, Edward Elgar Publishing.
    2. Ashish Arora, 1995. "Licensing Tacit Knowledge: Intellectual Property Rights And The Market For Know-How," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 41-60.
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    Open innovation; IPRs; knowledge spillovers; R&D;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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