In a model of sequential innovations, it is shown that the simple monotone relationship between the number of firms and the speed of innovation [see, e.g., Loury (1979)] no longer holds if we explicitly take account of the incentive to patent.
Bibliographical noteFunding Information:
like to thank Jerry Green, Jung-Ho Kim, Eric Maskin, and Suzanne Scotchmer for their advice and encouragement. support from the Korea Foundation for Advanced Studies is gratefully acknowledged. Any remaining errors are
All Science Journal Classification (ASJC) codes
- Economics and Econometrics