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| Author: | Bhattacharya, S. Guriev, S. |
| Title: | Patents vs. trade secrets: knowledge licensing and spillover |
| Journal: | Journal of the European Economic Association
2006 : DEC, VOL. 4:6, p. 1112-1147 |
| Index terms: | knowledge R&D innovation licensing patents law methodology models |
| Freeterms: | intellectual property |
| Language: | eng |
| Abstract: | This paper develops a model of 2-stage cumulative research and development (R&D), in which one research unit (RU) with an innovative idea bargains to license its non-verifiable interim knowledge exclusively to 1 of 2 competing development units (DUs) through 1 of 2 alternative modes: i. an open sale after patenting this knowledge, or ii. a closed sale. Both modes lead to partial leakage of RU's knowledge from its description, to the licensed DU alone in a closed sale, and to both DUs in an open sale etc. |
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