We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are … entrepreneurial effort allocated to high-quality invention projects. Using data on patents granted to small firms and individuals, we …

We construct a tractable general equilibrium model of cumulative innovation and growth, in which new ideas strictly … lower than the social planner's benchmark, which suggests a role for patent policy. We focus on a “non-infringing inventive … the rate of innovation, as well as a separate optimal required inventive step that maximizes welfare, with the former …

This paper develops a model of patent trolls to understand various litigation strategies employed by nonpracticing …

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 …

-competitive effects of patent pools for complementary patents naturally extend for dynamic innovation incentives. However, this simple …This paper analyzes patent pools and their effects on innovation incentives. It is shown that the pro … case, the licensing fees reflect the strength of patents. Patent pools of complementary patents can be used to discourage …

We analyse how a patent-holding pharmaceutical firm may strategically use advertising of existing drugs to affect R … advertising, we show that such overinvestment incentives are always present, and that more generous patent protection implies that … a larger share of the patent rent is spent on marketing, relative to R&D …

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 …