Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9724480 | International Journal of Industrial Organization | 2005 | 28 Pages |
Abstract
This paper analyzes optimal policy in the context of cumulative innovation in a model that endogenizes patenting decisions of early innovators. Secrecy can significantly decrease investment in the second innovation. We show that as the effectiveness of secrecy as a protection mechanism increases, which may be the case if the government has a strong trade secret policy or innovators can monitor the flow of their technological information, it becomes optimal to have broad patent protection over a larger parameter space. In cases when patent policy is ineffective in achieving disclosure, it is socially desirable to have a lenient antitrust policy and allow collusive agreements.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nisvan Erkal,