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on Intellectual Property Rights |
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Issue of 2014‒06‒14
three papers chosen by Giovanni Ramello Universita' del Piemonte Orientale Amedeo Avogadro |
| By: | Alberto Galasso; Matthew Mitchell; Gabor Virag |
| Abstract: | Patents are a useful but imperfect reward for innovation. In sectors like pharmaceuticals, where monopoly distortions seem particularly severe, there is growing international political pressure to identify alternatives to patents that could lower prices. Innovation prizes and other non-patent rewards are becoming more prevalent in government’s innovation policy, and are also widely implemented by private philanthropists. In this paper we develop a model in which a patent buyout is effective, using information from market outcomes as a guide to the payment amount. We allow for the fact that sales may be manipulable by the innovator in search of the buyout payment, and show that in a wide variety of cases the optimal policy in our model still involves some form of patent buyout. The buyout uses two key pieces of information: market outcomes observed during the patent’s life, and the competitive outcome after the patent is bought out. We show that such dynamic market information can be effective at determining both marginal and total willingness to pay of consumers in many important cases, and therefore can generate the right innovation incentives in our model. |
| JEL: | O30 O34 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20197&r=ipr |
| By: | Vadim Grigorian (Pernod Ricard); Francine Espinoza Petersen (ESMT European School of Management and Technology) |
| Abstract: | In luxury brand management, experiences are essential. However, most of what we know about designing customer experiences originates from work developed with and/or for mass brands. Luxury brands are conceptually different and require a specific approach to brand management. Using a grounded theory approach, we present a framework consisting of seven principles to design luxury experience. Our research suggests that to create a true luxury experience brands should go beyond traditional frameworks of brand management. By compiling best practices and the commonalities amongst the interviewed companies’ most successful efforts to create a luxury experience, the framework can help brands to implement a “trading-up” strategy: Luxury brands can enhance their desirability by offering a true luxury experience and non-luxury brands can adopt principles of luxury experience and become life-style brands. |
| Keywords: | Brand management, luxury brands, luxury marketing, emotions, customer experience, experience design, luxury consumption |
| Date: | 2014–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:esm:wpaper:esmt-14-04&r=ipr |
| By: | Antonio Cubel; Vicente Esteve; Maria Teresa Sanchis; Juan A. Sanchis-Llopis |
| Abstract: | This paper analyses the relationship between total factor productivity (TFP) and innovation-related variables during the second half of the 20th century. We perform this analysis for several European countries (France, Germany, the United Kingdom, and Spain) and the U.S., extending Coe and Helpman’s (1995) empirical specification to include human capital. We use a new dataset of patents data for the past 150 years to calculate the stock of knowledge using the perpetual inventory method. Our time series empirical analysis confirms the heterogeneous relationship between innovation variables (domestic stock of knowledge, imports of knowledge, and human capital) and productivity. Our results reveal the extent to which observed differences in technology adoption patterns and the levels of endowment of such resources can explain differences in TFP dynamics across countries. The estimated coefficients confirm the considerable gap that still exists between the European countries and the U.S. in innovation-related variables. Furthermore, we obtain a finding that may have important implications for innovation policies: the higher the level of investment in human capital, the higher the level of investment in domestic innovation, and the higher the response of TFP to a 1% increase in any of the aforementioned variables. |
| Keywords: | OECD,international technology diffusion, patents, productivity, cointegration |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:uae:wpaper:0614&r=ipr |