Cornelli, Francesca; Schankerman, Mark - C.E.P.R. Discussion Papers - 1998
patent lives when firms have different R&D productivities. A uniform patent life provides excessive R&D incentive to low …-productivity firms, and too little to high ones. The optimally differentiated patent scheme can be implemented through a menu of patent … with existing patent renewal systems and to illustrate the potential welfare gains from the optimal policy. …