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Competition and Innovation: the effects of scientist mobility and stronger patent rights

Madhuparna Ganguly

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze the relationship between innovation attributes and competition intensity in a framework of endogenous knowledge spillover due to scientist mobility, and identify the effects of stronger patents on innovation at different levels of product market competition. We �nd non-monotone relations of patenting propensity, innovation incentives and investment in R&D, and monotone relation of scientist mobility, with potential product market competition intensity. The study further shows that stronger patent laws reduce (increase) innovation profitability (R&D expenditure) when the market for the new product is moderately competitive, and have no effect otherwise. The results suggest important implications for patent policy reforms.

Keywords: Competition intensity; Innovation; Patent strength; Scientist mobility (search for similar items in EconPapers)
JEL-codes: D43 J60 L11 L13 O34 (search for similar items in EconPapers)
Date: 2021-05-19
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind, nep-ipr, nep-lab, nep-law and nep-tid
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