Creating a “Market for Inventions”: A Referee Model

Gesualdo Grimaldi

Abstract


This article considers that the flow of new not patented innovations is difficult to occur among firms, especially when some inventions are caused by serendipity. Here I develop a model to analyze the conditions for a “market for inventions” to exist. With the help of game theory in particular, I show that the creation of such a market is quite unlikely because unfair buyer’s behaviour and the possibility of expropriation of the new innovation renders the seller reluctant to negotiate with a potential buyer. So I argue for a solution that involves a third referenced party into the negotiation so that it can guarantee the flow of ideas among institutions and generate a surplus for the whole society.

Keywords


Errors, Ideas, Innovation, Invention, Knowledge,Technology Transfer.

Full Text:

PDF [en]

References


AGHION, P.,Tirole,J. (1994),"On the Management of Innovation", Quarterly Journal of Economics, 109, pp. 1185-1207.

ANTON J.J., Yao D.A., (1994),"Expropriation and Inventions: Appropriable Rents in theAbsence of Property Rights",American Economic Review 84 (1): 190-209.

ARORA A, Fosfuri A, Gambardella A., (2001), The Economics of Innovation and Corporate Strategy, MIT Press.

ARROW K. (1962), Economic Welfare and the Allocation of Resources for Invention, Princeton University Press.

COOTER, R. - Ulen J. (1988), Law and Economics, Scott, Foresman and Company.

D'ASPREMONTC Jacquemin (1988) "Cooperative and Non-cooperative R & D in Duopoly with spillovers" American Economic Review, (78), pp 1133-37.

FUNDENBERG,D.-Tirole,J.(1983),"Sequential Bargaining with Incomplete Information", Review of Economic Studies 2:221 -247.

GANS J.S.- Stern, S. (2003),"The Product Market and the Market for ldeas: Commercialization Strategies for Technology Entrepreneurs", Research Policy 32: 333-350.

GIBSON, D.V - Rogers, E. M. (1994), R & D Collaboration on Triol: The Microelectronics and Computer Technology Consortium, Harvard Business School Press, Boston, MA.

GRIMALDI,G. (2008) "Ideas Errors and the Commercialization of Valuable Knowledge" fortheoming in Technology Analysis and Strategic Management;

HALL, R. (1992), "The Strategic Analysis of Intangible Resources", Strategic Management Journal 13 (2): 135-144.

HALL, R. (1993),"A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage", Strategic Management Journal 84 (8): 607-618.

JOLLY,V.K, (1997), Commercializing New Technologies, Harvard Business School Press.

KAMIEN, M.I., E. Muller and I. Zang (1992),"Cooperative joint ventures and R & D Cartels", American Economic Review,(82), pp. 1293-1306.

KREPS, David M.,A Course in Microeconomic theory Prentice Hall, Englewood Cliffs, USA, 1990.

LIEBESKIND J.R, (1996) "Knowledge, Strategy, and the Theory of the Firm", Strategic Management Journal 17: 93-107.

MANSFIELD, E. Schwartz, M.Wagner, S. (1981),"Imitation Costs and Patents: An Empirical Study", Economic Journal 91 (364): 907-918.

NIE Puyan (2007) "Selection games in Economics" Applied Economic Letters, (14): 223-225;

PAMOLLI F. Rossi M.A., (2005) "Intellectual Property Technological Regimes and Market Dynamics" Economia e Politica Industriale (2): 87-133.

PAVITT, K., (1984),"Sectoral Patterns of technological change: Towards a taxonomy and a theory", Research Policy,( 13), pp. 343-373.

RASMUSEN, E. (1997), Teoría dei giochi ed informazione, Hoepli.

RICARDO D, (1926), Principies of Political Economy and Taxation, London: Everyman.

ROGERS, E.M.-Takegami, S.-Yin J., (2001),"Lessons Learned AboutTechnology Transfer", Technovation (21): 253-261.

ROGERS, F.M. (1995), Diffusion of Innovations, 4th edition, New York: Free Press.

RUBINSTEIN, A. (1982), "Perfect Equilibrium in Bargaining Model", Econometrica 50 (I): 97-1 10.

SANNA-RANDACCIO F.,Veugelers R. (2007) "Multinational Knowledge spillovers with decentralised R & D: a game-theoretic approach" Journal of International business Studies, (38): 47-63.

SOEDER, W.E.-Nashar, A.S.-Padmanabhan, V.(1990),"A Guide to the Best Technology Transfer Practices", Journal of Technology Transfer 15.

STEPHAN, RE. (1996),"The Economics of Science", Journal of Economic Literature 34: 1199-1235.

TEECE, D.J.( 1977),"Technology Transfer by Multinational firms: The resource Cost of Transferring Technological Know-How", Economic Journal 87 (346): 242-261.

TIBOR, Kremic (2003) "Technology Transfer: A Contextual Approach", Journal of Technology Transfer (28): 149-158.




DOI: http://dx.doi.org/10.4067/S0718-27242008000100004



Copyright (c)



2017 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by Chimera Innova Group