OPEN INNOVATION AND IPRs: MUTUALLY INCOMPATIBLE OR COMPLEMENTARY INSTITUTIONS?

Mário Alexandre Patrício Martins da Silva ()
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Mário Alexandre Patrício Martins da Silva: Faculdade de Economia da Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: In this paper, we explain the analytics of a particular type of mechanism of Open Innovation (OI), namely the management of non-pecuniary exchange of information, and address the relationship between Intellectual Property Rights (IPRs), particularly patent rights, and OI using a static game-theoretic setting of Research and Development competition. We show that, surprisingly perhaps, a rise in the strength of patent protection induces the free sharing and dissemination of technological information and other contributions to the OI development of innovations. Conversely, a fall in the strength of the patent system induces the exercise of traditional IPRs by innovative firms to protect their intellectual assets.

Keywords: Open innovation; IPRs; knowledge spillovers; R&D (search for similar items in EconPapers)
JEL-codes: O33 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2017-11
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino, nep-ipr and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:596

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