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Competitive disadvantage through non-existing software patents


  • Pia Weiss

    (Chemnitz University of Technology)


In a model of sequential patent races, it is examined whether or not introducing a patent law in the home country is beneficial to the firms and the society as a whole given the foreign country already offers patent protection. Before the first patent race starts, the firms and the foreign country share interests. For a given total number of firms, the welfare effect depends on the relative competition profit. For medium values of the latter, the foreign country as well as the firms gain and the home country loses by introducing the patent law. In a Cournot and a Bertand model with a homogeneous product, the home country will never benefit from the introduction of patent protection.

Suggested Citation

  • Pia Weiss, 2004. "Competitive disadvantage through non-existing software patents," Development and Comp Systems 0402006, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0402006
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    References listed on IDEAS

    1. James Bessen & Robert M. Hunt, 2007. "An Empirical Look at Software Patents," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(1), pages 157-189, March.
    2. Robert M. Hunt, 1999. "Nonobviousness and the incentive to innovate: an economic analysis of intellectual property reform," Working Papers 99-3, Federal Reserve Bank of Philadelphia.
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    More about this item


    Sequential patent races; patent law; competition policy;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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