We develop a dynamic duopoly model of R&D competition to improve the quality of a finalgood. The innovation process is … production model under two distinct intellectual property right (IPR) regimes,essentially a patent system with and without a … other hand, depends onthe relative magnitudes of the costs of initial innovation and improvements. In particular, aresearch …

In an experimental setting, firms in a duopoly market engage in a patent tournamentand compete for profit … theensuing innovation race, firms interact through information spillovers resulting fromthe imperfect appropriability of research … of agents who are engaged in innovation activities. As a key element wetest to what extend relative economic performance …

An innovative firm chooses strategically whether to patent its process innovation or rely on secrecy. By doing so, the … firm manages its rival’s beliefs about the size of the innovation, and affects the incentives in the product market … an innovative firm with unknown costs and probabilistic patent validity. Increasing the number of firms (degree of …