The economics of patents.

Abstract

This paper analyses whether the institutions of patents is a desirable attribute of the economic system, and what are the features of an optimal patent system are. It also discusses how patents, as currently implemented, affect the workings of the economic system and how the existence of patents affects the allocation of resources to, and the distribution of income arising from, inventive activities. It is indicated that the patent system has emerged as the central institution for asserting intellectual property rights in many crucial fields of science and technology. From an economic point of view, it is suggested that patents offer a second-best solution to the market failure arising from the public-good nature knowledge. As such, the patent system contributes to solving a problem but comes with shortcomings of its own, mostly because it creates market power positions that can adversely affect the economic performance of the system.

Entrepreneurship and Economic Growth: An Empirical Analysis

“…i Previously, it was reviewed how the economic literature has analyzed, under different models and assumptions, the significance of patents and their attributes. Recently, Langinier and Moschini (2002) summarized the economic role that patents play in encouraging incentives for innovation and the spreading of knowledge, and in facilitating technology transfer i The patent statistics given by WIPO are divided into two main categories: (1) "applications for patents filed by:" and (2) "grants of patents to:". Each one contains three subcategories: (a) "residents", (b) "non-residents" and (c) "total".…”

Advantages and Disadvantages of the Single European Patent / Prednosti in slabosti enotnega evropskega patenta

“…A patent ensures property rights, positively impacts the promotion of innovation, and can increase the flow of these rights (Langinier & Giancarlo, 2002). The increase in the number of patents is particularly desirable; otherwise, a market system might provide little new knowledge.…”

“…In today's increasingly competitive global economy, it is particularly important that the EU does not lag behind others in the field, which is so crucial for innovations as patent policy (Evropska komisija, 2006). Patents are a driving force for promoting growth, competitiveness, and innovation (Langinier & Giancarlo, 2002). From 2008 to 2010, the industrial sectors in the EU, particularly those dealing with intellectual property, created almost 26% of all jobs, and patents represented 10% of the total value.…”

“…Intellectual property rights are closely linked to innovations that significantly contribute to competitiveness (Langinier & Giancarlo, 2002). It seems that promoting links (EPO & OHIM, 2013), leading from the research and development (R&D) to new jobs-through innovation, competitive advantage, and economic success-has never been more important than in today's world of increasingly globalized markets and the knowledge-based economy.…”

Intellectual Property Rights and Crop-Improving R&D under Adaptive Destruction

“…Given the exclusivity afforded by IPRs, the innovator can price monopolistically at M p so that, at the quantity demanded by users at that price, the marginal production cost mc equals the marginal revenue mr . Ex post, therefore, the innovator can extract a profit equal to π (the green area in Figure 1), but some of the innovation's benefits also accrue to users, and relative to the ex post first-best use of the innovation there is also a deadweight loss-these two effects are labeled cs and dwl in Figure 1 (e.g., Langinier and Moschini, 2002). To make the model tractable, we specifically postulate that there is a unit mass of end-users whose valuation of the new product is distributed uniformly on the interval [0, ] v .…”