Patent protection for complex technologies

Denicolò, Vincenzo; Zanchettin, Piercarlo

Abstract

We analyze patent protection with sequential and complementary innovation. We argue that in these cases the classic Nordhaus trade-off between innovation and static monopoly distortions is different from the case of isolated innovations. We parametrize the degree of innovation sequentiality and complementarity and show that the optimal level of patent protection increases with both. We also address the issue of the optimal division of profit among different innovators.

Citation

Denicolò, V., & Zanchettin, P. (2022). Patent protection for complex technologies. International Journal of Industrial Organization, 81, Article 102811. https://doi.org/10.1016/j.ijindorg.2021.102811

• Journal Article Type: Article
• Acceptance Date: Dec 6, 2021
• Online Publication Date: Jan 1, 2022
• Publication Date: Mar 1, 2022
• Deposit Date: Dec 8, 2021
• Publicly Available Date: Jan 2, 2024
• Journal: International Journal of Industrial Organization
• Print ISSN: 0167-7187
• Electronic ISSN: 1873-7986
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 81
• Article Number: 102811
• DOI: https://doi.org/10.1016/j.ijindorg.2021.102811
• Keywords: Strategy and Management; Industrial relations; Economics, Econometrics and Finance (miscellaneous); Economics and Econometrics
• Public URL: https://nottingham-repository.worktribe.com/output/6913538
• Publisher URL: https://www.sciencedirect.com/science/article/abs/pii/S016771872100103X
• Additional Information: CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.ijindorg.2021.102811; Content Type: article; Copyright: © 2022 Elsevier B.V. All rights reserved.