THE IMPACT OF LEARNING CAPABILITIES ON INNOVATION UNDER MONOPOLY STRUCTURES: FROM PATENT RACES TO LEARNING RACES

摘要

Whether monopolists have motives to innovate becomes the research focus on the relationship between the monopoly and innovation. This paper reviews incentives of monopoly structures on innovation. It uses an uncertainty innovation model to prove that incentives to monopolists are not certainly larger than those to challengers. It leads learning races to the patent races model and proves that if monopolists can't improve their learning capabilities, they will probably fail in innovation races and lose the monopoly statuses. It also discusses the result of patent races with one-way spillovers and proves that these effects will add incentives to challengers also.