Pre-grant patent publication and cumulative innovation.(Report) Aoki, Reiko; Spiegel, Yossi

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Aoki, Reiko ; Spiegel, Yossi
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International Journal of Industrial Organization
Research institutes; Patents; Intellectual property
To link to full-text access for this article, visit this link: Byline: Reiko Aoki (a)(b), Yossi Spiegel (c) Keywords: R&D; Patents; Pre-grant patent publication; Patenting decision; Spillover; Consumer surplus; Welfare; Ex post licensing Abstract: We examine the implications of pre-grant publication (PP) of patent applications in the context of a cumulative innovation model. We show that PP leads to fewer applications and fewer inventions, but it may raise the probability that new technologies will reach the product market and thereby enhances consumer surplus and possibly total welfare as well. Author Affiliation: (a) Center for Intergenrational Studies and Institute of Economic Research, Hitotsubashi University, Tokyo, Japan (b) Department of Economics, University of Auckland, Private Bag 92109, Auckland, New Zealand (c) Recanati Graduate School of Business Administration, Tel Aviv University, Ramat Aviv, Tel Aviv 69978, Israel Article History: Received 27 May 2007; Revised 28 July 2008; Accepted 3 October 2008 Article Note: (footnote) [star] An earlier version of this paper was circulated under the title "Public Disclosure of Patent Applications, R&D, and Welfare" (Foerder Institute Working Paper No. 30-98). We thank two anonymous referees for their comments on the current version, and Masayoshi Omachi for helpful discussions on some of the institutional details and facts.
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