We survey the economics literature on optimal patent design. We first outline the patent right and the basic economic effects of the patent on innovation. Models that use frictions instead of patents to generate rewards to innovation and models of trade secrecy are considered briefly. The patent...

We present a selective survey of the economic theory of intellectual property rights. After a brief description of the institutional framework, we discuss policy objectives and some basic welfare tradeoffs in intellectual property design. We consider the extent to which social objectives can be...