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- W3205960018 abstract "This paper studies how an inventor protects a “complex” innovation that involves multiple complementary components. Each component can be protected through either patent or secrecy protection, so that the entire innovation may be protected through a patent-secret combination. Potential entrants might acquire these components either through costly imitation or licensing. I find that, first, secrecy is optimal when the patent length is relatively short; otherwise, a patent-secret combination is optimal; second, the inventor is over-rewarded compared to an inventor with an innovation that is equivalent except that it involves only a single-component so that the entire innovation can be protected through either patent or secrecy protection; and, third, a policy that precludes the use of a patent-secret combination enhances allocative efficiency ex-post but may stifle R&D incentives ex-ante." @default.
- W3205960018 created "2021-10-25" @default.
- W3205960018 creator A5076196248 @default.
- W3205960018 date "2021-12-01" @default.
- W3205960018 modified "2023-09-27" @default.
- W3205960018 title "Optimal use of patents and trade secrets for complex innovations" @default.
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- W3205960018 doi "https://doi.org/10.1016/j.ijindorg.2021.102788" @default.
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