Guido, Cozzi - In: The B.E. Journal of Macroeconomics 7 (2007) 1, pp. 1-20
This paper shows that standard Schumpeterian theory does not imply that the incumbent monopolist has too little incentive to carry out R&D aimed at displacing its own product. If the patent holder is rational as is any other R&D investor, she will know that in equilibrium her patents...