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Patent Protection with Cooperative R&D Option

Author

Listed:
  • Che, Xiaogang
  • Yang, Yibai

Abstract

We investigate R&D incentive under patent protection with cooperation option. Chowdhury [Economics Letters, 2005, 89(1), 120-126] claims that patent protection may decrease R&D incentive when the tournament effect (TE) is negative. However, We show that patent protection in the presence of R&D cooperation option always increases R&D incentive. In addition, to increase R&D incentive, this option strictly dominates imitation and may dominate royalty licensing under patent protection, introduced by Mukherjee [Economics Letters, 2006, 93(2), 196-201].

Suggested Citation

  • Che, Xiaogang & Yang, Yibai, 2009. "Patent Protection with Cooperative R&D Option," MPRA Paper 19436, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19436
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    References listed on IDEAS

    as
    1. Prabal Roy Chowdhury, 2005. "Patents and R & D: The tournament effect," Discussion Papers 05-05, Indian Statistical Institute, Delhi.
    2. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-1320, December.
    3. Che, Xiaogang & Yang, Yibai, 2009. "Patent Protection with Licensing," MPRA Paper 19438, University Library of Munich, Germany.
    4. Mukherjee, Arijit, 2006. "Patents and R&D with imitation and licensing," Economics Letters, Elsevier, vol. 93(2), pages 196-201, November.
    5. Chowdhury, Prabal Roy, 2005. "Patents and R&D: The tournament effect," Economics Letters, Elsevier, vol. 89(1), pages 120-126, October.
    6. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    R&D investment; Patent protection; Cooperative R&D;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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