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Pool of Basic Patents and Follow-Up Innovations

Corinne Langinier ()

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

Abstract: Basic innovations are often fundamental to the development of applications that may be developed by other innovators. In this setting, we investigate whether patent pools can rectify the lack of incentives for developers to invest in applications. Following Green and Scotchmer (1995), we also wonder whether broad basic patents are necessary 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 patents of similarly wide breadth. Further, even though patent pools rectify the problem of developers’ incentives, they may reduce the incentive for doing basic research.

Keywords: patent pool; innovation; breadth (search for similar items in EconPapers)
JEL-codes: K11 L40 O31 (search for similar items in EconPapers)
Date: 2006-07-19
New Economics Papers: this item is included in nep-ind, nep-ino, nep-mic and nep-tid
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http://www2.econ.iastate.edu/papers/p3855-2006-07-19.pdf (application/pdf)

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Working Paper: Pool of Basic Patents and Follow-up Innovations (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12647

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