Innovation Variety and Patent Breadth
Year: 2001
Type: article
Abstract: When innovations are heterogeneous, it may be advantageous to provide a variety of patents. By trading off patent breadth for length, it is possible that fees are not needed in the optimal policy. We present two examples. The first is a quality-ladder model, in which innovations benefit society directly as well as through their use as building blocks to future inventions, and the rate of arrival for the future innovation is unobserved. More fertile innovations get more breadth for a shorter time. Menus may also be useful in the case of horizontal product differentiation.
Source: The RAND Journal of Economics
DOI: 10.2307/2696402
Authors: Hugo A. Hopenhayn, Matthew F. Mitchell
Institutions: University of Rochester, University of Minnesota
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3125948817