Creating a “Market for Inventions”: A Referee Model

Gesualdo Grimaldi

doi:10.4067/S0718-27242008000100004

Authors

Gesualdo Grimaldi University of Catania

DOI:

https://doi.org/10.4067/S0718-27242008000100004

Keywords:

Errors, Ideas, Innovation, Invention, Knowledge, Technology Transfer.

Abstract

This article considers that the flow of new not patented innovations is difficult to occur among firms, especially when some inventions are caused by serendipity. Here I develop a model to analyze the conditions for a “market for inventions” to exist. With the help of game theory in particular, I show that the creation of such a market is quite unlikely because unfair buyer’s behaviour and the possibility of expropriation of the new innovation renders the seller reluctant to negotiate with a potential buyer. So I argue for a solution that involves a third referenced party into the negotiation so that it can guarantee the flow of ideas among institutions and generate a surplus for the whole society.

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Author Biography

Gesualdo Grimaldi, University of Catania

department of economics and quantitative methods

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