nep-ino New Economics Papers
on Innovation
Issue of 2023‒10‒09
four papers chosen by
Uwe Cantner, University of Jena

  1. A Novel Matching Algorithm for Academic Patent Paper Pairs: An Exploratory Study of Japan's national research universities and laboratories. By Van-Thien Nguyen; René Carraz
  2. Resource Misallocation in the Presence of R&D Spillovers By Li, Kun; Azacis, Helmuts; Luintel, Kul B
  3. Non-practicing entities and transparency of patent ownership in Europe: the case of UK dormant companies By Valerio Sterzi; Jean Paul Rameshkoumar; Johannes van Der Pol
  4. Innovation Market Failures and the Design of New Climate Policy Instruments By Sarah C. Armitage; Noël Bakhtian; Adam B. Jaffe

  1. By: Van-Thien Nguyen; René Carraz
    Abstract: This paper proposes a new method for matching patents with academic publications to create patent-paper pairs (PPP). These pairs can identify instances where a research result is both applied in a patent and published in a paper. The study focuses on a sample of top research-intensive universities and laboratories in Japan, utilizing a new dataset that contains patent-to-article citations and a machine learning model as part of the matching process. Expert consultations were conducted to enhance the robustness of the methodology. Focusing on a set of 14 Japanese universities and 3 national research laboratories, using patent (USPTO) and publication data (OpenAlex) between 1998 and 2018, we built a dataset of 3, 177 PPPs out of 7, 766 granted patents and 91, 213 publications. The results demonstrate that this phenomenon is widespread in academia and our data show the diversity of the academic disciplines and technical field involved, highlighting the intricate connections between scientific and technical concepts and communities. On the methodological side, we documented in-depth complementary validation techniques to enhance the precision and reliability of our matching algorithm. Using open-source data, our methodology is adaptable to diverse national contexts and can be readily adopted by other research teams investigating similar topics.
    Keywords: Patent Paper Pair; Methodology; Matching algorithm; Academic patent; Japan.
    Date: 2023
  2. By: Li, Kun (Cardiff Business School); Azacis, Helmuts (Cardiff Business School); Luintel, Kul B (Cardiff Business School)
    Abstract: We study resource misallocation by explicitly modelling R&D input and knowledge spillovers. The effects of R&D and spillovers on firm-level productivity are extensively studied in applied work, but not in the context of resource misallocation. We establish that, in the presence of spillovers, efficient resource allocation requires that more productive firms face higher R&D input prices. Analysing UK firm-level data, we find that the output gains from correcting misallocation are greatly overestimated when spillovers are ignored. Output losses due to capital distortions dominate those from labour and R&D inputs. Adopting a wrong R&D policy could lead to significant output losses.
    Keywords: resource misallocation, productivity, R&D spillover, the UK manufacturing firms
    JEL: D24 D61 O30 O47
    Date: 2023–09
  3. By: Valerio Sterzi (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Jean Paul Rameshkoumar (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Johannes van Der Pol (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: While various studies in the fields of law and economics have analysed the business models of patent aggregators and large non-practicing entities (NPEs) in the US, small NPEs operating in Europe typically escape academic and media attention. Here, to address this imbalance, we specifically identify and characterize the patent portfolios of NPEs registered as dormant companies in the UK and investigate whether they are created for the purpose of acquiring valuable IP assets or launching litigation campaigns. Our econometric analysis – based on more than two hundred NPEs registered as dormant companies in 2019 – supports the second hypothesis. Finally, as an illustrative example of how small NPEs use UK dormant companies to acquire and litigate patents in Europe, we describe the business model of Dragon Green Development Balboa SA, an entity incorporated in the Republic of Panama that controls thirteen UK dormant companies and which is involved in fourteen patent litigation cases in Germany. © 2021
    Keywords: Balboa, Business Models, Dormant Company, Economics, Laws And Legislation, Media Attention, Non-Practicing Entity, Patent Assertion Entity, Patent Litigation, Patent Ownership, Patent Portfolio, Patent Transparency, Patent Trolls, Patents And Inventions, Transparency
    Date: 2021–11
  4. By: Sarah C. Armitage; Noël Bakhtian; Adam B. Jaffe
    Abstract: Moving beyond the combination of adoption subsidies, standards, and (albeit limited) attempts at carbon pricing that largely characterized U.S. climate policy over the last decade, recent climate-related legislation has transformed not only the scale of U.S. climate activities but also the policy mechanisms adopted. Newly scaled policy instruments — including demonstration projects, loan guarantees, green banks, and regional technology hubs — are motivated not only by un-priced carbon externalities but also by innovation market failures. This paper maps the economics literature on innovation market failures and other frictions to the stated goals of these policy instruments, with the goal of focusing discussions about how to implement these policies as effectively as possible. The paper also discusses how program evaluation can help to illuminate which market failures are most relevant in a particular context and which policy instruments are most targeted to them.
    JEL: O32 O38 Q54 Q55 Q58
    Date: 2023–08

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