Denicolò, Vincenzo; Franzoni, Luigi A. - 2014
We analyze optimal patent design when innovators can rely on secrecy to protect their innovations. Secrecy provides a … the optimal policy is to induce the first innovator to patent. Furthermore, we derive the optimal scope of the rights … conferred to late innovators. We show that if the patent life can be suitably set, broad patent protection is optimal: late …