search query: @author Eswaran, M. / total: 5
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| Author: | Eswaran, M. Gallini, N. |
| Title: | Patent policy and the direction of technological chance |
| Journal: | RAND Journal of Economics
1996 : WINTER, VOL. 27:4, p. 722-746 |
| Index terms: | PATENTS POLICY TECHNOLOGICAL CHANGE INNOVATION NEW PRODUCTS |
| Language: | eng |
| Abstract: | This paper explores the interaction between firms' product and process innovation decisions and the role that patent policy plays in directing technological change toward a socially efficient mix of innovations. Product innnovation is a variant on a pioneer's new product. Process innovation improves upon the cost efficiency of production. A model with heterogeneous consumers shows that an entrant relaxes competition by trading of too much process innovation in favor of product innovation. The bias toward product innovation can be corrected through appropriate choice of patent breadths. |
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