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Protecting Early Innovators: Should Second-Generation Products be Patentable?


Suzanne Scotchmer


University of California - Department of Economics ; School of Law, University of California, Berkeley; National Bureau of Economic Research (NBER)

RAND J. OF ECONOMICS, Vol. 27 No. 2

Abstract:     
Incentives to develop basic technologies are greater if the patentholder profits from applications or other second-generation products. Assuming that such products infringe the basic patent and that there is not much delay between the innovations, I argue that (i) patents on second-generation products are not necessary to encourage their development and (ii) the patentholder of the basic technology collects a larger share of the profit if applications or other second generation products are not patentable.

JEL Classification: O31

Accepted Paper Series


Date posted: July 8, 1998  

Suggested Citation

Scotchmer, Suzanne, Protecting Early Innovators: Should Second-Generation Products be Patentable?. RAND J. OF ECONOMICS, Vol. 27 No. 2. Available at SSRN: http://ssrn.com/abstract=7268

Contact Information

Suzanne Scotchmer (Contact Author)
University of California - Department of Economics ( email )
Berkeley, CA 94720-3880
United States
510-643-8562 (Phone)
School of Law, University of California, Berkeley ( email )
Berkeley, CA 94720-7200
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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