An innovative firm chooses strategically whether to patent its process innovation or rely on secrecy. By doing so, the … an innovative firm with unknown costs and probabilistic patent validity. Increasing the number of firms (degree of … a smaller (greater) patenting incentive if patent protection is weak (strong). -- Bertrand and Cournot competition …

Big companies and small innovation factories possess different advantages in a patent contest. While large firms … patent contest with asymmetric firms. In a pre-contest acquisition game large firms bid sequentially for small firms to …. Furthermore, acquisitions increase the chances for a successful innovation. -- patent contest ; sequential acquisitions …