Denicolò, Vincenzo; Franzoni, Luigi A. - 2014
We analyze optimal patent design when innovators can rely on secrecy to protect their innovations. Secrecy provides a … temporary monopoly, which terminates when the secret leaks out or the innovation is duplicated. We find conditions under which … the optimal policy is to induce the first innovator to patent. Furthermore, we derive the optimal scope of the rights …