Patent Protection As A Stimulant for Risky Innovation. Could TRIPS be Counterproductive?

This paper introduces the idea that strong patent protection can lead innovators to rest on their laurels, into a simple tournament based framework. Concentrating on optimal patent protection, the one that maximizes production, the model shows that there is a positive relationship between the ability of the economy (firm) to innovate and how strong patent protection should be. This line of thinking runs counter to the uniÞed intellectual property regime, as introduced by TRIPS.