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Do broad patents deter research cooperation ?

Author

Listed:
  • Trommetter, M.
  • Tropéano, J.P.

Abstract

The authors develop a theoretical model where two competing firms need access to basic knowledge that only one firm owns. They determine the impact of an imperfect property right on the incentive to transfer that knowledge to the competitor. They compare these transfer strategies. (i) Patenting may lead to litigation costs that depend on the competition toughness. (ii) Keeping the knowledge secret involves no licence revenue but ensures a monopoly profit. (iii) The firm can also coooperate with the competitor and thereby avoids litigation. They show that whenever competition between both firms is low, making patentable basic knowledge promotes knowledge transfer through research cooperation.

Suggested Citation

  • Trommetter, M. & Tropéano, J.P., 2009. "Do broad patents deter research cooperation ?," Working Papers 200904, Grenoble Applied Economics Laboratory (GAEL).
    • Handle: RePEc:gbl:wpaper:200904
    as

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    File URL: https://gael.univ-grenoble-alpes.fr/sites/default/files/Mediatheque/doc-recherche/WP/A2009/gael2009-07.pdf
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    References listed on IDEAS

    as
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    6. Klaus Kultti & Tuomas Takalo & Juuso Toikka, 2007. "Secrecy versus patenting," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 22-42, March.
    7. Joseph Farrell & Carl Shapiro, 2008. "How Strong Are Weak Patents?," American Economic Review, American Economic Association, vol. 98(4), pages 1347-1369, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    INNOVATION; SECRET; PATENT; cooperation; KNOWLEDGE SHARING;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

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