Selling patent rights and the incentive to innovate

Yair Tauman*, Ming Hung Weng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

We show that an outside innovator has a higher incentive to innovate than an incumbent innovator, by auctioning off his patent rights exclusively to an incumbent firm. For significant innovations this is also superior to selling licenses directly.

Original languageEnglish
Pages (from-to)241-244
Number of pages4
JournalEconomics Letters
Volume114
Issue number3
DOIs
StatePublished - Mar 2012
Externally publishedYes

Keywords

  • Cournot oligopoly
  • Incentive to innovate
  • Patent licensing
  • Patent rights
  • Process innovation

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