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Entrepreneurial Commercialization Choices and the Interaction between IPR and Competition Policy

30 Pages Posted: 30 Apr 2012  

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Date Written: January 2, 2012

Abstract

This paper examines the interaction between intellectual property protection and competition policy on the choice of entrepreneurs with respect to commercialization as well as the rate of innovation. We find that stronger intellectual property protection makes it more likely that entrepreneurs will commercialize by cooperating with incumbents rather than competing with them. Consequently, we demonstrate that competition policy has a clearer role in promoting a higher rate of innovation in that event. Hence, we identify one reason why the strength of the two policies may be complements from the perspective of increasing the rate of entrepreneurial innovation.

Keywords: entrepreneurs, innovation, commercialization, intellectual property law, competition law

JEL Classification: O31

Suggested Citation

Persson, Lars and Gans, Joshua S., Entrepreneurial Commercialization Choices and the Interaction between IPR and Competition Policy (January 2, 2012). IFN Working Paper No. 895. Available at SSRN: https://ssrn.com/abstract=2048235 or http://dx.doi.org/10.2139/ssrn.2048235

Lars Persson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Joshua S. Gans

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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