This paper analyzes the optimal protection strategy for an innovator of a complex innovation who faces the risk of … imitation by a competitor. We suppose that the innovation can be continuously fragmented into sub-innovations. We characterize … the optimal mix of patent and trade secrets when the innovator faces a strict novelty requirement and can only patent a …

This paper analyzes the setting of national patent policies in the global economy. In the standard model with free … induce individual countries to select patent strengths that are weaker than is optimal from a global perspective. The paper … considerations in setting patent policies. The first two features (trade barriers interacting with firm heterogeneity) tend to reduce …

In this paper we develop a theory of patenting in which a firm preserves its reputation to only apply for a patent …. In particular, we analyze the merits of different patent systems. …

patentability standards at PTOs (Patent and Trademark Offices awarding so-called bad patents), not only “false innovators” have the … chance of being granted patents but also, and more interestingly, “true innovators” are forced to patent more intensively … distortions caused by bad patents. Moreover, we show that introducing a two-tiered patent system is unlikely to improve market …

in knowledge spillovers. Drawing on the NBER Patent Citations Database, we examine patent citations data at metropolitan … level within the U.S. and the 38 largest patent-cited countries outside the U.S. We present 3 key findings: First, we find … of cited patent, which implies that new knowledge faces the largest barriers to diffusion. However, over time, border and …