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Patent Protection with a Cooperative R&D Option

Author

Listed:
  • Che, XiaoGang

    () (University of Alberta, Department of Economics)

  • Yang, Yibai

    () (University of Sydney)

Abstract

Patent protection may decrease R&D incentives due to the tournament e ffect. In this paper, we show that patent protection in the presence of a cooperative R&D option always increases the R&D incentive. In addition, this option dominates imitation to increase the R&D incentive under patent protection, and may also dominate royalty licensing depending on the R&D cost.

Suggested Citation

  • Che, XiaoGang & Yang, Yibai, 2012. "Patent Protection with a Cooperative R&D Option," Working Papers 2012-6, University of Alberta, Department of Economics.
  • Handle: RePEc:ris:albaec:2012_006
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    File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-06.pdf
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    References listed on IDEAS

    as
    1. Mukherjee, Arijit, 2006. "Patents and R&D with imitation and licensing," Economics Letters, Elsevier, vol. 93(2), pages 196-201, November.
    2. Rockett, Katharine, 1990. "The quality of licensed technology," International Journal of Industrial Organization, Elsevier, vol. 8(4), pages 559-574, December.
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    Cited by:

    1. Yang, Yibai, 2013. "Optimal patent policy, research joint ventures, and growth," Economics Letters, Elsevier, vol. 118(2), pages 381-384.

    More about this item

    Keywords

    cooperative R&D; patent protection; R&D incentive;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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