Taste for Exclusivity and Intellectual Property Rights
This article analyzes the effects of intellectual property rights protection on innovation in a quality-ladder model in which part of the consumers value being the exclusive consumers of the newest generation of a good. In the case of a monopoly innovator, we show that reducing IP protection can increase the average innovation rate by regularly destroying exclusivity and thereby creating incentives to invent new exclusive goods. In the case where R&D is undertaken by entrants, the innovation rate, however, increases in the strength of IP protection for most market structures. In each case, we derive the welfare-maximizing strength of IP protection.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2010.
"Does intellectual monopoly stimulate or stifle innovation?,"
29061, University Library of Munich, Germany.
- Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2012. "Does intellectual monopoly stimulate or stifle innovation?," European Economic Review, Elsevier, vol. 56(4), pages 727-746.
- Chu, Angus C. & Cozzi, Guido & Galli, Silvia, 2010. "Does intellectual monopoly stimulate or stifle innovation?," MPRA Paper 31019, University Library of Munich, Germany, revised May 2011.
- Angus C. Chu & Guido Cozzi & Silvia Galli, 2009. "Innovation-Specific Patent Protection," IEAS Working Paper : academic research 09-A010, Institute of Economics, Academia Sinica, Taipei, Taiwan, revised 03 Dec 2009.
- Gerard Llobet & Hugo Hopenhayn & Matthew Mitchell, 2003.
"Rewarding Sequential Innovators: Prizes, Patents and Buyouts,"
Levine's Working Paper Archive
618897000000000682, David K. Levine.
- Hugo Hopenhayn & Gerard Llobet & Matthew Mitchell, 2006. "Rewarding Sequential Innovators: Prizes, Patents, and Buyouts," Journal of Political Economy, University of Chicago Press, vol. 114(6), pages 1041-1068, December.
- Llobet, G. & Hopenhayn, H. & Mitchell, M., 2000. "Rewarding Sequential Innovators: Prizes, Patents and Buyouts," Papers 0012, Centro de Estudios Monetarios Y Financieros-.
- Gerard Llobet & Hugo A. Hopenhayn & Matthew F. Mitchell, 2000. "Rewarding sequential innovators: prizes, patents and buyouts," Staff Report 273, Federal Reserve Bank of Minneapolis.
- Aghion, Philippe & Howitt, Peter, 1992.
"A Model of Growth through Creative Destruction,"
Econometric Society, vol. 60(2), pages 323-51, March.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Kiedaisch, Christian, 2015.
"Intellectual property rights in a quality-ladder model with persistent leadership,"
European Economic Review,
Elsevier, vol. 80(C), pages 194-213.
- Christian Kiedaisch, 2012. "Intellectual property rights in a quality-ladder model with persistent leadership," ECON - Working Papers 078, Department of Economics - University of Zurich.
- O'DONOGHUE, Ted & SCOTCHMER, Suzanne & THISSE, Jacques-François, .
"Patent breadth, patent life, and the pace of technological progress,"
CORE Discussion Papers RP
1314, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ted O'Donoghue & Suzanne Scotchmer & Jacques-François Thisse, 1998. "Patent Breadth, Patent Life, and the Pace of Technological Progress," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(1), pages 1-32, 03.
- Robert M. Hunt, 2004.
"Patentability, Industry Structure, and Innovation,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 52(3), pages 401-425, 09.
- Wolfgang Pesendorfer, 1993.
"Design Innovation and Fashion Cycles,"
1049, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
- Horowitz, Andrew W & Lai, Edwin L-C, 1996. "Patent Length and the Rate of Innovation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 785-801, November.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:80017. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.