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Intellectual property rights in a quality-ladder model with persistent leadership


Kiedaisch, Christian (2012). Intellectual property rights in a quality-ladder model with persistent leadership. Working paper series / Department of Economics 78, University of Zurich.

Abstract

This article analyzes the effects of intellectual property rights in a quality-ladder model in which incumbent firms preemptively innovate in order to keep their position of leadership. Unlike in models with leapfrogging, granting non-expiring forward protection reduces the rate of innovation and imposing a non-obviousness requirement reduces R&D spending. It is shown that full protection against imitation, granted independently of the size of the lead, maximizes the average innovation rate.

This article analyzes the effects of intellectual property rights in a quality-ladder model in which incumbent firms preemptively innovate in order to keep their position of leadership. Unlike in models with leapfrogging, granting non-expiring forward protection reduces the rate of innovation and imposing a non-obviousness requirement reduces R&D spending. It is shown that full protection against imitation, granted independently of the size of the lead, maximizes the average innovation rate.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:L40, O31, O34
Uncontrolled Keywords:Intellectual property rights, persistent leadership, cumulative innovation, preemption, forward protection, non-obviousness requirement, patent policy
Language:English
Date:May 2012
Deposited On:30 May 2012 17:23
Last Modified:05 Apr 2016 15:50
Series Name:Working paper series / Department of Economics
Number of Pages:54
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp078.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php
Permanent URL: http://doi.org/10.5167/uzh-62712

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