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On the optimal mix of patent instruments

Listed author(s):
  • Chu, Angus C.
  • Furukawa, Yuichi

A special characteristic of the patent system is that it features multiple patent-policy levers that can be employed by policymakers. In this study, we develop a quality-ladder model to analyze the optimal mix of patent instruments. Specifically, we consider (a) patent breadth and (b) the division of profit in research joint ventures. We analytically derive optimal patent policies and then calibrate the model to quantitatively evaluate the welfare gain from optimizing both patent instruments as compared to optimizing only one patent instrument. In summary, we find that the welfare gain can be substantial.

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File URL: https://mpra.ub.uni-muenchen.de/29792/1/MPRA_paper_29792.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24039.

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Date of creation: Aug 2010
Handle: RePEc:pra:mprapa:24039
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