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Economics of Patents: An Overview, The

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  • Langinier, Corinne
  • Moschini, GianCarlo

Abstract

In this paper, we review the economic effects of intellectual property rights and specifically address the economics of the patent system. The production and dissemination of new knowledge is fraught with market failures because knowledge is a public good. Patents provide a second-best solution to the resulting appropriability problem. We review the main benefits and costs of the patent system, focusing on the role that patents play in providing incentives for innovation, in promoting the dissemination of knowledge, and in helping technology transfer and commercialization of new technology. From a more normative perspective, we address the questions of what the features of an optimal patent system are and whether the patent system is socially desirable. We examine the problem of the optimal length and scope of patent protection, both for the case of a single innovation and for the richer case of cumulative innovations. Finally, we review the issues related to how the patent system influences the market structure and research and development investments.

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  • Langinier, Corinne & Moschini, GianCarlo, 2002. "Economics of Patents: An Overview, The," Staff General Research Papers Archive 2061, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:2061
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    Cited by:

    1. GianCarlo Moschini, 2004. "Intellectual Property Rights and the World Trade Organization: Retrospect and Prospects," Chapters, in: Giovanni Anania & Mary E.. Bohman & Colin A. Carter & Alex F. McCalla (ed.), Agricultural Policy Reform and the WTO, chapter 19, pages 474-511, Edward Elgar Publishing.
    2. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2019. "Universal intellectual property rights: Too much of a good thing?," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 51-81.
    3. Gopal Krishna Roy, 2022. "An Economic Case for Waiving Intellectual Property Rights on Covid Vaccines," India Quarterly: A Journal of International Affairs, , vol. 78(1), pages 143-147, March.
    4. Tonnerre, Antoine, 2017. "A Spatial Analysis of Innovation in Europe," MPRA Paper 80116, University Library of Munich, Germany.
    5. Michel Trommetter, 2010. "Flexibility in the implementation of intellectual property rights in agricultural biotechnology," European Journal of Law and Economics, Springer, vol. 30(3), pages 223-245, December.
    6. Andrew Eckert & Corinne Langinier, 2014. "A Survey Of The Economics Of Patent Systems And Procedures," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 996-1015, December.
    7. van den Heuvel, Matthias & Popp, David, 2023. "The role of venture capital and governments in clean energy: lessons from the first cleantech bubble," Energy Economics, Elsevier, vol. 124(C).
    8. Héctor Salgado-Banda, 2005. "Entrepreneurship and Economic Growth: An Empirical Analysis," DEGIT Conference Papers c010_031, DEGIT, Dynamics, Economic Growth, and International Trade.
    9. Philipp N. Baecker, 2007. "Real Options and Intellectual Property," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-540-48264-2, October.
    10. Trommetter, M., 2008. "Intellectual property rights in agricultural and agro-food biotechnologies to 2030 (© OECD International Futures Programme)," Working Papers 200805, Grenoble Applied Economics Laboratory (GAEL).
    11. Badri Munir Sukoco & Rizky Ananda Putra & Humam Nur Muqaffi & Muhammad Vinka Lutfian & Hendro Wicaksono, 2023. "Comparative Study of ASEAN Research Productivity," SAGE Open, , vol. 13(1), pages 21582440221, January.
    12. Alexis Habiyaremye, 2022. "Optimal Patent Protection Length for Vital Pharmaceuticals in the Age of COVID-19," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    13. Katrin Hussinger, 2006. "Is Silence Golden? Patents Versus Secrecy At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(8), pages 735-752.
    14. Héctor Salgado-Banda, 2007. "Entrepreneurship And Economic Growth: An Empirical Analysis," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 3-29.
    15. Abdul Rahman Shaikh & Hamed Alhoori, 2019. "Predicting Patent Citations to measure Economic Impact of Scholarly Research," Papers 1906.08244, arXiv.org.

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