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Patent Carrots And Sticks: An Economic Model Of Nonobviousness, Michael J. Meurer, Katherine J. Strandburg

Katherine J. Strandburg

The authors develop an informal model of the impact of the nonobviousness standard on the choice of research projects. Previous models assume that the basic question confronting a researcher is, “Shall I produce this particular invention?” More realistically, the authors think a researcher asks, “Which research path shall I pursue?” The model shows that a patent serves as a carrot to induce the choice of more difficult projects than would be pursued under the no-patent alternative. The nonobviousness standard serves as a stick to prod researchers to choose even more difficult projects. The results of the model help us understand …