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| Author: | Goh, A.-T. Olivier, J. |
| Title: | Optimal patent protection in a two-sector economy |
| Journal: | International Economic Review
2002 : NOV, VOL. 43:4, p. 1191-1214 |
| Index terms: | Patents Trade marks R&D |
| Language: | eng |
| Abstract: | The author addresses the issue of optimal patent protection in an economy with a downstream and a upstream sector. The key insight is that higher patent protection in the downstream sector raises the incentives of agents to do R & D in that sector bit discourages innovation in the upstream sector because of a market size effect. If some innovation is socially desirable, optimal patent protection is necessarily higher in the upstream than in the downstream sector. |
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