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dc.contributor.author Bergin, James
dc.date.accessioned 2008-10-22T16:10:27Z
dc.date.available 2008-10-22T16:10:27Z
dc.date.copyright 2008 Geary Institute en
dc.date.issued 2008-03-18
dc.identifier.uri http://hdl.handle.net/10197/607
dc.description.abstract The intent of the patent system is to encourage innovation by granting the innovator exclusive rights to a discovery for a limited period of time: with monopoly power, the innovator can recover the costs of creating the innovation which otherwise might not have existed. And, over time, the resulting innovation makes everyone better off. This presumption of improved social welfare is considered here. The paper examines the impact of patents on welfare in an environment where there are large numbers of (small) innovators — such as the software industry. With patents, because there is monopoly for a limited time the outcome is necessarily not socially optimal, although social welfare may be higher than in the no-patent state. Patent acquisition and ownership creates two opposing incentives at the same time: the incentive to acquire monopoly rights conferred by the patent spurs innovation, but subsequent ownership of those rights inhibits innovation (both own innovation and that of others). On balance, which effect will dominate? In the framework of this paper separate circumstances are identified under which patents are either beneficial or detrimental to innovation and welfare; and comparisons are drawn with the socially optimal level of investment in innovation. en
dc.format.extent 209207 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. Geary Institute en
dc.relation.ispartofseries UCD Geary Institute Discussion Paper Series en
dc.relation.ispartofseries WP/8/2008 en
dc.subject.lcsh Patents--Cost effectiveness en
dc.subject.lcsh Technological innovations--Social aspects en
dc.title Optimal patent length en
dc.type Working Paper en
dc.internal.authorurl James Bergin (web page) en
dc.internal.authorurl http://geary.ucd.ie/Table/About-Items/?ref=8236662 en
dc.internal.authorcontactother Email: berginj@ucd.ie; Tel: +353 1 716 4618 en
dc.internal.authorid UCD0002 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://geary.ucd.ie/images/Publications/WorkingPapers/gearywp200808.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Bergin|James|aut|UCD0002


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