Chen, Yongmin; Pan, Shiyuan; Zhang, Tianle - In: Journal of Economic Behavior & Organization 98 (2014) C, pp. 115-124
Under continual innovation, greater patent strength expands innovating firms’ profit against imitation, but also shifts profit from current to past innovators. We show how the impact of patents on innovation, as determined by these two opposing effects, varies with industry characteristics....
