Innovation and Competition Policy

"This book uses the principles and tools of law and economics to examine the impact of regulation on the strategies of firms engaged in innovation. Specifically, the publication examines several key issues. First, various economic aspects of patent rights, a state-created form of market exclusivity, is analysed. Second, the competitive exploitation of the patent rights in the form of licensing, is evaluated from the perspective of antitrust and competition law. Finally, the use of collaborative research and development arrangements as a means for reducing the costs of and difficulties that are associated with new product development is reviewed, also by reference to the attitudes of antitrust and competition regulators. In each case, reference is made not only to judicial decisions, but also to economic theory and the actual practices of firms in the market place. The book takes a comparative approach, reviewing past and current regulatory practices in the United States and in the European Community. In particular, the monograph contrasts and compares recent proposed changes in both the United States and the EC relating to the review of intellectual property licensing arrangements under antitrust and competition law. The book also examines how the United States and the EC have each dealt with research and development joint ventures and with other pre-distribution collaborative arrangements, including the National Cooperative Research and Production Act in the United States and the EC's block exemption for research and development arrangements. The publication concludes with suggestions and recommendations as to areas of further study, including the use of alternative regulatory schemes to provide ongoing incentives for innovation"--Unedited summary from book cover.