from negative externalities, i.e. spillovers to other firms, and hence imitation could be induced. To preempt imitation … highlight the trade-off of patenting by setting up a recursive system of equations on knowledge leakage and imitation that … functioning of the contemporary patent system. We find that patenting firms are being less confronted with imitation. The effect …

both strategies is stochastic. The choice between in-house R\&D and imitation is endogenous, and based on firms' profit … maximization motive. Firms closer to the technological frontier face fewer imitation opportunities, and choose in-house R\&D, while …