Firms’ research and development (R&D) investments are sources of positive externalities, thus justifying innovation policies based on a mix of R&D subsidies, tax credits and intellectual property rights. All those measures represent a way to encourage companies which invest in R&D by rewarding...

The standard view of patents emphasizes their dynamic efficiency. It considers that, by providing firms with incentives to invest in R&D and to disclose their knowledge, patents encourage innovation and increase social welfare in the long run. Yet, a growing body of literature opposes this view...