Pool of Basic Patents and Follow-up Innovations

Corinne Langinier

No 21127, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: In a model with two basic innovations that are fundamental to the development of an application, we investigate whether a patent pool can rectify the lack of incentives for developers to invest in applications when basic innovators themselves cannot develop follow-up applications. Furthermore, following Green and Scotchmer (1995), we investigate whether broad basic patents are necessary in order to provide enough incentives for basic innovators. We show that patent pools are more likely to be formed with patents of very different breadth, or with patents of similarly wide breadth. However, even though patent pools rectify the problem of developers' incentives, they may reduce the incentive for doing basic research.In a model with two basic innovations that are fundamental to the development of an application, we investigate whether a patent pool can rectify the lack of incentives for developers to invest in applications when basic innovators themselves cannot develop follow-up applications. Furthermore, following Green and Scotchmer (1995), we investigate whether broad basic patents are necessary in order to provide enough incentives for basic innovators. We show that patent pools are more likely to be formed with patents of very different breadth, or with patents of similarly wide breadth. However, even though patent pools rectify the problem of developers' incentives, they may reduce the incentive for doing basic research.

Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Pages: 25
Date: 2006
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Working Paper: Pool of Basic Patents and Follow-Up Innovations (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21127

DOI: 10.22004/ag.econ.21127

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