Are Intellectual Property Rights Detrimental to Innovation?

Posted: 27 Apr 2009

See all articles by Claude Crampes

Claude Crampes

Toulouse University

Corinne Langinier

University of Alberta - Department of Economics

Date Written: April, 26 2009

Abstract

Intellectual property rights are legal constraints that limit conditions of entry in industries where incumbents are innovators. The set of legal constraints is the same for all industries, and there is no consideration of the possibility that the externalities created by entry in a given industry may not necessarily be negative for the incumbent, or that the incumbent's R&D expenditures might actually be detrimental to new entrants. We show that one unique set of legal rules can foster innovation in some industries and be detrimental in others. Our model is illustrated by case studies from the Information and Communication Technologies industry.

Keywords: Innovation, spillover, leadership, intellectual property rights

JEL Classification: K4, L11, O31

Suggested Citation

Crampes, Claude and Langinier, Corinne, Are Intellectual Property Rights Detrimental to Innovation? (April, 26 2009). Available at SSRN: https://ssrn.com/abstract=1395528

Claude Crampes

Toulouse University ( email )

Manufacture des Tabacs
21 Allee de Brienne bat. F
Toulouse Cedex, F-31000
France

Corinne Langinier (Contact Author)

University of Alberta - Department of Economics ( email )

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

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