Econ 483_Lecture 12_Optimal IP protection

Intro length breadth optimal policy length of

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Unformatted text preview: lia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Length of protection ) The longer patent life provides more pro…t for each idea. ) Increasing the strength of protection will lead to more innovation. But, the lengthening of protection increases deadweight loss & thus, reduces the social value of the innovation. Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy The social value of investing in the idea (vi , ci ) is vi r where lvi T T : the duration of protection; r : the discount rate ) The social value is larger with shorter protection, provided the innovation gets made. Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Breadth as a policy lever Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chaliot...
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