It is often the case that the introduction of new products and services requires the development of several distinct complementary technologies. These technologies may be independently developed by different firms. Each firm may possess a technology that has a much greater value when combined...

We argue that cross-licensing is a device to establish specialization in a multi-product Stackelberg duopoly under process innovation. The optimum licensing contracts are royalty contracts. These are designed so as to implement the joint-profit maximization (monopoly) outcome as the unique Nash...

It is often the case that the introduction of new products and services requires the development of several distinct complementary technologies. These technologies may be independently developed by different firms. Each firm may possess a technology that has a much greater value when combined...

We consider the effects of product and process patents on profits and welfare. In a duopoly model, we show that if the cost of imitation is not very large, prisoner's dilemma occurs under process patent, thus creating lower profit of each firm under process patent than under product patent....

Economic studies that aim at comparing the patent system social efficiency versus an ex-post reward system rest on a traditional view of patents. They make the hypothesis that firms use the patent system only in order to be granted a short-term monopoly rent and therefore that patents lead to...

In a duopoly where both firms produce substitutes, we show that under process innovation, specialization is the equilibrium attained with cross-licensing. Each firm produces only the good for which it has an advantage, and social welfare may improve. Patent pool extension confirms the results.

Under the Cross-Licensing system (CL), firms are allowed to trade non cooperatively the results of R&D efforts, and compete in the innovation and production stages. First, the paper proposes a simple modeling of this system. Second, a relevant comparison is made with the Cartelized Research...

C72, L24, D23.