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Working Paper No. 01-13 Patentability, Industry Structure, And Innovation

By Hunt, Robert M.

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Book Id: WPLBN0000166656
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Title: Working Paper No. 01-13 Patentability, Industry Structure, And Innovation  
Author: Hunt, Robert M.
Language: English
Subject: Trade, Import and export controls, Federal Trade Commission (U.S.)
Collections: Economics Publications Collection, Federal Trade Commission
Publication Date:
Publisher: Government Printing Office


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Hunt, R. M. (n.d.). Working Paper No. 01-13 Patentability, Industry Structure, And Innovation. Retrieved from

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Abstract: This paper evaluates a model of sequential innovation in which industry structure (the number of firms) is endogenous and a standard of patentability determines the proportion of all inventions that qualify for protection. In equilibrium, the number of firms actively engaged in R&D is the primary determinant of an industry?s rate of progress. The patentability standard affects firms' entry decisions because it affects the expected profits associated with innovations.


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