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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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IMPACT FACTOR 2016: 0.252
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1935-1682
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Volume 9, Issue 1 (Jul 2009)

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Innovation, Imitation and Competition

Wen Zhou
Published Online: 2009-07-10 | DOI: https://doi.org/10.2202/1935-1682.2256

Abstract

In a general equilibrium framework, it is known that imitation may actually promote innovation (Aghion et al., 1997). The same effect is demonstrated with a standard oligopoly model in which one firm has the ability to develop technologies while all other firms imitate and obtain a fraction of it for free. Competition is shown to dampen innovation, while imitation may stimulate it if imitation is strong and competition moderate. The findings have implications for policy toward intellectual property rights protection, as weak protection may promote rather than impede technology innovation.

Keywords: innovation; imitation; competition; intellectual property protection

About the article

Published Online: 2009-07-10


Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.2256.

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