The literature on patent buyouts has focused on single-economy settings, where buyouts are welfare improving relative … to patents unless there are frictions such as imperfect information or commitment problems. We expand the analysis to a … world with two heterogeneous countries featuring different sizes and innovation capacities. Moving to an international …

firms may protect their inventions by means of intellectual property rights, such as patents. By taking out a patent … of patents on the dissemination of R&D findings is, however, insignificant. Therefore, we conclude that patent …From a firm’s perspective two competing forces are driving the decision to invest in innovation. On the one hand …