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Are Intellectual Property Rights Detrimental to Innovation?

Claude Crampes () and Corinne Langinier ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: Intellectual property rights are legal constraints that limit entry in industries where incumbents are innovators. The set of legal constraints is the same for all industries, without considering that the externalities created by entry are not necessarily negative for the incumbent or that the incumbent's R&D expenditures can be detrimental to entrants. We show that one unique set of legal rules can foster innovation and increase total R&D expenditures in some industries and be detrimental in others. The model is illustrated by case studies from the information and communication technologies industry (software, hardware, music and videogame industries).

Keywords: innovation; spillover; leadership; R&D regulation (search for similar items in EconPapers)
JEL-codes: K40 L11 O31 (search for similar items in EconPapers)
Date: 2005-03-25
New Economics Papers: this item is included in nep-com, nep-ino, nep-reg and nep-tid
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Journal Article: Are Intellectual Property Rights Detrimental to Innovation? (2009) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12267

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