Abstract
A model that describes the innovation process is developed in order to understand the effect of patent policies on an industry where firms interact under Schumpeterian competition. The technology space that is harvested by the firms in this particular case is a grid of \(200 \times 200\) sites, each site has a level of productivity and a resistance to be discovered and firms have the capacity to explore this space and imitate other discoveries locally and globally. However, even with such an appropriate scenario for a patent system, a negative effect was found on consumers and innovation due to the implementation of a strong patent system compared to the situation where there is no patent system.
M. H. Barrenechea—I will like to thank three unknown referees, for their patience in reading the early version of this manuscript, their comments and recommendations were very useful. Also I will like to give special thanks to Ronaldo Nazaré and Gertjan Dordmond for their corrections and suggestions on the text.
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Notes
- 1.
Patent breath is the largeness of the protection of a innovation in the sense of similarity with other innovations.
- 2.
Initially in the first attempts of what is done in the paper used the model developed in [8]. Lately in this paper this strategy was changed because the NW models describe competence in a market with a unique good, so the innovations are directed in the production of a such good, called processes innovations, not product innovations as in [8].
- 3.
The presentation of the model was inspired in the ODD protocol [3].
- 4.
The choice of the calibration of the parameters yields similar results as in [5, chap. 12].
- 5.
If the imitation trial was not successful the last coordinates are maintained, and a similar procedure is used for the exploration location.
- 6.
See [4] for a detailed example, about how to calculate conjectures in the case of a duopoly.
- 7.
In case of ambiguity, some tests for comparisons should be used. Nonetheless, in our analysis we did not confront with such situation.
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Barrenechea, M.H. (2018). Schumpeterian Competition, Technology Space, and Patents. In: Dimuro, G., Antunes, L. (eds) Multi-Agent Based Simulation XVIII. MABS 2017. Lecture Notes in Computer Science(), vol 10798. Springer, Cham. https://doi.org/10.1007/978-3-319-91587-6_10
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