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We show a new way through which patent protection affects innovation. We show that patent protection may reduce the … final goods producers' incentives for innovation in industries with imperfectly competitive input markets. The input market …
Persistent link: https://www.econbiz.de/10009651874
may not be the equilibrium outcome in the presence of licensing. Depending on the cost of innovation, licensing may either …
Persistent link: https://www.econbiz.de/10008500621
We show that if patent protection and trade secrecy generate asymmetric market structure, an innovator may prefer patent protection than trade secrecy even if the diffusion probability is higher under the former but it increases market concentration by preventing some imitators. So, whether an...
Persistent link: https://www.econbiz.de/10005094884