nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2023‒07‒10
two papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Licensing a product innovation from an external innovator to a Stackelberg duopoly By Antelo, Manel; Bru, Lluís
  2. Understanding the uneven growth of Intellectual Property Products investment in the U.S. By Dennis J. Fixler; Eva de Francisco

  1. By: Antelo, Manel; Bru, Lluís
    Abstract: We study the licensing of a product innovation from an external innovator in a duopoly of firms that compete sequentially with each other through quantities or prices. We find that the innovation is only licensed to a single firm, regardless of market competition. However, both the licensee and contractual terms under quantity competition differ from those under price competition. In the first case, the innovation is licensed to the market-leading firm through a non-distorting contract, and in the second case, to the market-following firm by means of a two-part tariff (distorting) contract involving a per-unit royalty.
    Keywords: Product innovation, licensing, Stackelberg duopoly, quantity competition, price competition
    JEL: D43 D45
    Date: 2023
  2. By: Dennis J. Fixler; Eva de Francisco (Bureau of Economic Analysis)
    Abstract: Given the attention to intangible capital in studying industry dynamics and aggregate investment trends in the last couple of decades, this paper provides a descriptive analysis of Intellectual Property Products (IPP) as measured in the National Accounts (NIPAs) by the Bureau of Economic Analysis (BEA), with attention directed to their three components: R\&D, Software, and Entertainment, literary and artistic originals (ELAO), as well as the relationship among investment in IPP, equipment, and structures within some key sectors in the economy. In particular, we show that for the 7 sectors studied in this paper, there was and still is a lot of heterogeneity in the types of IPP capital that sectors use to produce and deliver goods and services. We also illustrate that this heterogeneity seems to be the combination of different forces: First, the initial composition of the production function in 1980 among structures, equipment, and IPP components is quite persistent, and second, the different evolution of prices of these three types of IPP capital has played an important role in the pace of investment and transformation in these sectors.
    JEL: E22 E23 E24
    Date: 2022–06

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