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Imitations, economic activity and welfare

Author

Listed:
  • Gregorio Gim�nez

    (Facultad de Ciencias Econ�micas y Empresariales. Universidad de Zaragoza)

Abstract
The literature on innovation has traditionally seen imitation processes as harmful to the development of new technologies, adverse for growth and detrimental to the welfare of consumers, producers and society at large. However, as we show in our paper, despite this widespread belief, imitation processes have a significant and positive impact on economic activity. Among other effects, they allow excluded consumers access to new products, stimulate competition in the innovation process, encourage innovative activity and constitute a first step in developing more complex innovations. Therefore, as we will show through the development of two models -and despite the assertions of many politicians, interest groups and economists-, a lower strength patent system and an increase in the activities of imitation could i) increase the benefits to industry as a whole ii) lead to greater social surplus.

Suggested Citation

  • Gregorio Gim�nez, 2011. "Imitations, economic activity and welfare," Documentos de Trabajo dt2011-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    • Handle: RePEc:zar:wpaper:dt2011-03
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    imitation; innovation; patents; social surplus;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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