Creating a “Market for Inventions”: A Referee Model
AbstractThis 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.
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.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).