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Competition and Innovation: the effects of scientist mobility and stronger patent rights

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  • Ganguly, Madhuparna

Abstract

We analyze the relationship between innovation attributes and competition intensity in a framework of endogenous knowledge spillover due to scientist mobility, and identify the effects of stronger patents on innovation at different levels of product market competition. We �nd non-monotone relations of patenting propensity, innovation incentives and investment in R&D, and monotone relation of scientist mobility, with potential product market competition intensity. The study further shows that stronger patent laws reduce (increase) innovation profitability (R&D expenditure) when the market for the new product is moderately competitive, and have no effect otherwise. The results suggest important implications for patent policy reforms.

Suggested Citation

  • Ganguly, Madhuparna, 2021. "Competition and Innovation: the effects of scientist mobility and stronger patent rights," MPRA Paper 107831, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107831
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    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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