Patent protection for complex technologies

Vincenzo Denicolò and Piercarlo Zanchettin

International Journal of Industrial Organization, 2022, vol. 81, issue C

Abstract: We analyze patent protection with sequential and complementary innovation. We argue that in these cases the classic Nordhaus trade-off between innovation and static monopoly distortions is different from the case of isolated innovations. We parametrize the degree of innovation sequentiality and complementarity and show that the optimal level of patent protection increases with both. We also address the issue of the optimal division of profit among different innovators.

Keywords: Sequential innovation; Complementarity; Patent design; Elasticity of the supply of inventions; Division of profit (search for similar items in EconPapers)
JEL-codes: O30 O40 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:81:y:2022:i:c:s016771872100103x

DOI: 10.1016/j.ijindorg.2021.102811

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