R & D in the presence of network externalities: timing and compatibility
Article Abstract:
Network externalities can encourage companies to put forward new technologies which are not compatible. This likelihood is socially disadvantageous because increases in the costs of research and development can be spurred. In addition, actual standardization of technologies becomes difficult to orchestrate. In contrast with this scenario, firms can benefit from product introduction in the form of increased profits by suspending the release of incompatible technologies and by settling common standards before finally unveiling them.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1998
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On the division of profit in sequential innovation
Article Abstract:
Products often develop over a sequence of invention, revision and improvement. However, potential erosion of profits for the initial inventor may sufficiently discourage investment in the product's manufacture. Nevertheless, profit erosion can be reduced by expanding the scope of the initial inventor's patent. Moreover, agreements between the first inventor and later innovators can also be encouraged. Analysis reveals that original patent protection should be extended when the innovation process involves more than one firm.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1995
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On the optimality of the patent renewal system
Article Abstract:
The impact of asymmetric information on costs and benefits of research on the optimality of the patent renewal system has been assessed. Results indicate that renewal mechanisms are similar to direct revelation mechanisms. This observation suggests that the former cannot be improved regardless of the objective function. Patents may have a uniform life, under certain conditions, instead of having variable lengths, which happens commonly in renewal systems.
Publication Name: RAND Journal of Economics
Subject: Economics
ISSN: 0741-6261
Year: 1999
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