Discussion Papers, Policy Papers, Books & Reports, Bulletin, Newsletter, Economic Policy Lunchtime Meetings, Workshops & Conferences, Events Diary, Previous Events Programme Areas, Current Research Projects, Networks, Vacancies Programme Directors, Researchers Lists, Noticeboard Press Releases, Coverage, Request a Press Release Data?, Resources for Economists, Data on Other sites Membership information Login, Create a Profile, Profile Benefits, Your Profile Settings, Forgot Your Password? Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback How to find us, Frequently Asked Questions, ESRC Site Guide, Frequently Asked Questions, Vacancies, How to Search Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback CEPR Home Page You have items in your shopping cart. Click to view your cart
Google


DP5469 The Circulation of Ideas: Firms Versus Markets

Author(s): Thomas F Hellmann , Enrico C Perotti
Publication Date: January 2006
Keyword(s): ideas , firms , innovation
JEL(s): D83 , L22 , M13 , O31
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/pubs/dps/DP5469.asp


We describe new ideas as incomplete concepts for which the innovator needs feedback from agents with complementary skills. Once shared, ideas may be stolen. We compare how different contractual environments support invention and implementation. Markets, as open exchange systems, are good for circulation and thus elaboration, but may fail to reward idea generation. Firms, as controlled idea exchange systems, can reward idea generation but can do so only by restricting their circulation. This identifies a basic trade-off between protecting the rights of invention and the best implementation of ideas. An environment that allows ideas to cross firm boundaries enhances the rate of innovation and creates a symbiotic relationship between markets and firms.

Full text Search:
Enter a DP Number:

Access other features of the site by loging in with your personal profile. Purchase a copy of the paper in PDF format. Purchase a printed copy of the paper. How to subscribe to the CEPR Discussion Paper series Send an email to a colleague with details of the paper. Obtain Plain Text details of this paper which you can copy in to a word document or email allowing you to easily cite this paper! Help in purchasing and downloading papers. CEPR RSS feeds information page.

Your current location: Publications > Discussion Papers
Top CEPR, 53-56 Great Sutton Street, London EC1V 0DG
United Kingdom.
Tel: +44 (0)20 7183 8801     Fax: +44 (0)20 7183 8820
Email: cepr@cepr.org     Webmaster: webmaster@cepr.org 		Home
With the support of the European Union: Support for bodies active at European level in the field of active European citizenship