American Economic Review Vol. 99 No. 2 2009
A Model of Discovery
Abstract
Empirical research has reached the puzzling conclusion that stronger patents do little or nothing to encourage innovation. We show that the facts that have led to the assumption of fixed cost in the discovery process can be equally well explained by a standard model of diminishing returns. This may explain much of the misunderstanding of the (supposedly positive) role of monopoly in innovation and growth, thereby accounting for the empirical puzzle.
- DOI
- 10.1257/aer.99.2.337
- Volume
- 99
- Issue
- 2
- Pages
- 337-342
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref