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Debasmita Basak and Arijit Mukherjee
''Patent protection and innovation in a vertical structure''
( 2012, Vol. 32 No.1 )
We show a new way through which patent protection affects innovation. We show that patent protection may reduce the final goods producers' incentives for innovation in industries with imperfectly competitive input markets. The input market structure may play an important role in this respect.
Keywords: Patent protection; Innovation; Input market
JEL: O3 - Technological Change; Research and Development: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : May 04 2011 Manuscript Accepted : Mar 04 2012

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