Intellectual Property and Entrepreneurship

Posted: 4 Nov 2009

See all articles by Gary D. Libecap

Gary D. Libecap

University of California, Santa Barbara (UCSB) - Donald Bren School of Environmental Science & Management; University of Arizona - Karl Eller Center; National Bureau of Economic Research (NBER); PERC - Property and Environment Research Center

Date Written: 2004


This collection of essays presents leading work on intellectual property, examining how to create incentives to develop new technologies, how to protect them once developed, and when valuable property might be developed even under weak ownership conditions. "Procuring Knowledge," by Stephen M. Maurer and Suzanne Scotchmer catalogues and considers the efficacy of some incentive schemes to stimulate creativity and innovation, especially for basic scientific research, as a means to elicit investments in new knowledge. In "Economic Perspectives on Open Source," Josh Lerner and Jean Tirole consider the economics of open source software development and tentatively answer why individual programmers and commercial companies engage in it, despite the absence of intellectual property protection. "Submarines and Technological Innovation: U.S. Continuation Patenting in Software and Biotechnology Technologies in the 1980s and 1990s," by Stuart J. H. Graham and David C. Mowery, examines the role and purpose of "continuations" within biotechnology and software patents and the context of U.S. patenting during 1987-1999, and the efforts to curb such "submarine patenting." In "Firm Strategies and Trends in Patent Litigation in the United States," Deepak Somaya examines the strategic uses of patents and firms' motives to litigate. "Crossing the Great Divide: Using Adverse Possession to Resolve Conflicts Between the Antitrust and Intellectual Property Regimes," by Constance E. Bagley and Gavin Clarkson, explores the related questions when must a patent or copyright holder allow others to use that intellectual property and can the holder hinder another firm from succeeding in a related market? In "Incomplete Contracting and the Structure of R&D Joint Venture Contracts," Suzanne E. Majewski and Dean V. Williamson empirically examine contract design related to structures of joint R&D agreements and show how contracts can be incomplete and governance can matter. In "Will MP3 Downloads Annihilate the Record Industry? The Evidence So Far," Stan J. Liebowitz concludes MP3 downloads are hurting the recording industry, but the effect is not as large as claimed by the industry. Whether the impact will be fatal is not clear. "Strategies That Work When Property Rights Don't," by Bharat Anand and Alexander Galetovic, offers a taxonomy of strategies firms use to cope with weak property rights. The challenges facing the entertainment industry are shared by other industries. The authors show when a particular strategy works; success depends on characteristics of the asset and the firm. (TNM)

Keywords: Joint ventures, Entertainment industry, Contracts & agreements, Copyrights, Internet, Biotechnology industry, Litigation, Patents, Software industry, Intellectual property, Incentives

Suggested Citation

Libecap, Gary D., Intellectual Property and Entrepreneurship (2004). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN:

Gary D. Libecap (Contact Author)

University of California, Santa Barbara (UCSB) - Donald Bren School of Environmental Science & Management ( email )

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University of Arizona - Karl Eller Center ( email )

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National Bureau of Economic Research (NBER)

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PERC - Property and Environment Research Center

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