Patent Races with Dynamic Complementarity

Quaderni DSE Working Paper No. 733

47 Pages Posted: 9 Mar 2011 Last revised: 5 May 2020

See all articles by Andrea Blasco

Andrea Blasco

Harvard University - Institute for Quantitative Social Science

Date Written: February 23, 2011

Abstract

Recent models of multi-stage R&D have shown that a system of weak intellectual property rights may lead to faster innovation by inducing firms to share intermediate technological knowledge. In this article I introduce a distinction between plain and sophisticated technological knowledge, which has not been noticed so far but plays a crucial role in determining how different appropriability rules affect the incentives to innovate. I argue that the positive effect of weak intellectual property regimes on the sharing of intermediate technological knowledge vanishes when technological knowledge is sophisticated, as is likely to be the case in many high tech industries.

JEL Classification: L10, O30

Suggested Citation

Blasco, Andrea, Patent Races with Dynamic Complementarity (February 23, 2011). Quaderni DSE Working Paper No. 733, Available at SSRN: https://ssrn.com/abstract=1781000 or http://dx.doi.org/10.2139/ssrn.1781000

Andrea Blasco (Contact Author)

Harvard University - Institute for Quantitative Social Science ( email )

1737 Cambridge St.
Cambridge, MA 02138
United States

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