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Financially Constrained Innovation, Patent Protection, and Industry Dynamics

Author

Listed:
  • Javier Suarez

    (CEMFI, CEPR, and ECGI)

  • Gerard Llobet

    (CEMFI)

Abstract

We find that the protection against subsequent innovators is counterproductive for innovation and welfare, while some (generally not full) protection against imitation is good in both dimensions. We also find that the net welfare gains from increasing IP protection are increasing with the tightness of financial constraints.

Suggested Citation

  • Javier Suarez & Gerard Llobet, 2008. "Financially Constrained Innovation, Patent Protection, and Industry Dynamics," 2008 Meeting Papers 102, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:102
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    References listed on IDEAS

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    1. Obrimah, Oghenovo A., 2024. "Measuring Innovativeness: A ranking of the ordinal utility from consumption is more robust than either of ‘outcomes of commercialization’ or patent counts," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 603-616.

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