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In the shadow of giants

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  • Jing-Yuan, Chiou

Abstract

Intellectual giants provide broad shoulders for subsequent inventors. Their unfinished inquiry, however, also casts shadow on the prospect of future research. This paper incorporates this shadow effect into a two-stage innovation process and shows that patenting the first-stage result (the basic invention) may enhance the second-stage innovation. It is optimal to reject patent protection to the basic invention only when this beneficial effect does not arise, and when it is essential to preserve the pioneering inventor's incentive to continue research activities.

Suggested Citation

  • Jing-Yuan, Chiou, 2012. "In the shadow of giants," MPRA Paper 37033, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37033
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    References listed on IDEAS

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    More about this item

    Keywords

    Cumulative Innovation; Patentable Subject Matter; Probabilistic Patents; Search; Shadow Effect;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • K39 - Law and Economics - - Other Substantive Areas of Law - - - Other

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