Strategic disclosure of intermediate research results
Strategic disclosure of intermediate research results
We analyze the incentives to disclose intermediate research results during the course of a patent contest. Despite knowledge spillovers, the leading innovator sometimes discloses to signal commitment to the project, and so potentially inducing a rival's exit. Surprisingly, when development costs are low the leading innovator does not need to disclose to induce the same strategic deterrence effect as that which arises from disclosure. Taking into account wasteful duplication of R&D effort, a patent office can increase welfare by choosing the probability of granting a contested patent and so altering the proportion of rivals that the leading innovator deters.
disclosure, signalling, intermediate research results, spillovers, r&d, patent
733-758
Gill, David
2319117f-b14e-48c6-8a33-34f5c9d4e2ea
2008
Gill, David
2319117f-b14e-48c6-8a33-34f5c9d4e2ea
Abstract
We analyze the incentives to disclose intermediate research results during the course of a patent contest. Despite knowledge spillovers, the leading innovator sometimes discloses to signal commitment to the project, and so potentially inducing a rival's exit. Surprisingly, when development costs are low the leading innovator does not need to disclose to induce the same strategic deterrence effect as that which arises from disclosure. Taking into account wasteful duplication of R&D effort, a patent office can increase welfare by choosing the probability of granting a contested patent and so altering the proportion of rivals that the leading innovator deters.
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e-pub ahead of print date: 14 August 2008
Published date: 2008
Keywords:
disclosure, signalling, intermediate research results, spillovers, r&d, patent
Identifiers
Local EPrints ID: 51828
URI: http://eprints.soton.ac.uk/id/eprint/51828
ISSN: 1058-6407
PURE UUID: 7bcb5e59-756b-449a-98af-a8923db2a563
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Date deposited: 03 Jun 2008
Last modified: 15 Mar 2024 10:18
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Author:
David Gill
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