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An examination of the impact of regulation on the strategies of firms engaged in innovation, focusing on several key issues: the various economic aspects of patent rights; the competitive exploitation of the patent rights, in the form of licensing; and the use of collaborative R&D arrangements as a means of reducing the costs of, and difficulties associated with, new product development. In each case, reference is made not only to judicial decisions but also to economic theory and the actual practices of firms in the market place. A comparative approach is adopted, with a review of past and current regulatory practices in the US and the EC. The book also examines how the US and EC have each dealt with research and development joint ventures, and with other pre-distribution collaborative arrangements, including the National Cooperative Research and Production Act in the United States and the EC's block exemption for research and development arrangements.