Patent Pool Formation and Scope of Patents

26 Pages Posted: 9 Jul 2008

See all articles by Corinne Langinier

Corinne Langinier

University of Alberta - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2007

Abstract

Basic innovations are often fundamental to the development of applications that may be developed by other innovators. In this setting, we investigate whether patent pools can rectify the lack of incentives for a developer to invest in an application. Following Green and Scotchmer (1995), we also wonder whether broad basic patents are necessary in order to provide enough incentives for basic innovators. We show that patent pools are more likely to be formed with patents of very different breadths, or patents of similarly wide breadths. Further, although patent pools rectify the problem of developer incentives, they may reduce the incentive for doing basic research.

Keywords: Patent pool, innovation, breadth

JEL Classification: K11, L4, O31

Suggested Citation

Langinier, Corinne, Patent Pool Formation and Scope of Patents (September 1, 2007). Available at SSRN: https://ssrn.com/abstract=1155762 or http://dx.doi.org/10.2139/ssrn.1155762

Corinne Langinier (Contact Author)

University of Alberta - Department of Economics ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada

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