The Asian Growth Research Institute (AGI) invites researchers who work on Asia to present their work at AGI seminars. The participation fee is free for these seminars. The seminars are mainly for researchers, but the general public is also welcome to attend.
1 July 2015 (Wednesday), 16:00-17:30
Conference Room, 6th Floor, Asian Growth Research Institute
(Kitakyushu Otemachi Building “Move” 6th Floor, 11-4 Otemachi, Kokura-kita, Kitakyushu)
Presentation and Handouts: English
Presenter: Professor Reiko Aoki, Executive Vice President, Kyushu University
Title: “Patent Pools, Standards and Innovation”
We examine the effect of patent pools (PPs) on upstream innovation. PPs are established to facilitate downstream use, such as production and downstream innovation, of upstream intellectual property. We compare PPs with two alternative royalty redistribution rules, two different upstream innovation environments and two different anti-trust rules. Most PPs increase upstream R&D incentives by increasing licensing profit but this may lead to over-investment. We observe that when the market is ex-ante asymmetric (only one firm has ability to develop one of the technologies), unequal royalty distribution in favor of the one firm may be ex-post efficient but may result in under investment in the complementary technology. Thus in addition to balancing the trade-off between ex-ante (dynamic) efficiency and ex-post (static) efficiency as in the case of a single intellectual property, PPs must achieve the balance among members.
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