Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/106128
Authors: 
Brüggemann, Julia
Crosetto, Paolo
Meub, Lukas
Bizer, Kilian
Year of Publication: 
2015
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 227
Abstract: 
In this paper we contribute to the discussion on whether intellectual property rights foster or hinder innovation by means of a laboratory experiment. We introduce a novel Scrabble-like creativity task that captures most essentialities of a sequential innovation process. We use this task to investigate the effects of intellectual property allowing subjects to assign license fees to their innovations. We find intellectual property to have an adversely effect on welfare as innovations become less frequent and less sophisticated. Communication among innovators is not able to prevent this detrimental effect. Introducing intellectual property results in more basic innovations and subjects fail to exploit the most valuable sequential innovation paths. Subjects act more self-reliant and non-optimally in order to avoid paying license fees. Our results suggest that granting intellectual property rights hinders innovations, especially for sectors characterized by a strong sequentiality in innovation processes.
Subjects: 
innovation
intellectual property
laboratory experiment
real effort task
creativity
JEL: 
C91
D89
K39
Document Type: 
Working Paper

Files in This Item:
File
Size
817.67 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.