Piracy And Innovation: Does Piracy Restore Competition?
- Topics:
- Audio and video
- Source:
- University of Cambridge
FREE Registration is required
Overview: One of the main issues usually associated with piracy is that it hinders innovation. As this leads to smaller profits, firms have no incentive to innovate. In this article, we show that even if piracy is usually seen as innovation "Killer" it may, on the contrary, increase innovation: piracy places firms in a highly competitive environment and pushes them to innovate continuously in order to maintain their market power. We then evaluate the benefits of this innovation, stating that even if innovation is indeed encouraged, the type and level of innovation may be suboptimal. This leads to the discussion of different policies aiming at solving the piracy problem.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 219KB | Date: May 2004 | Pages: 31
