nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2007‒05‒12
fifteen papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. National Innovation Systems in Angola and Mozambique By Manuel, Eduardo
  2. Location and R&D Alliances in the European ICT Industry By Rajneesh Narula; Grazia D. Santangelo
  3. Multinational Firms and Innovation: The Role of R&D Collaboration, Markets and Ownership By Lööf, Hans
  4. Identifying Technology Spillovers and Product Market Rivalry By Nick Bloom; Mark Schankerman; John Van Reenen
  5. Intellectual Property Rights: Talking Points for RP-US FTA Negotiations By Tantuico, Delia S.; Zshornack, Errol Wilfred
  6. Knowledge and its Economic Characteristics - A Conceptual Clarification By Ulrich Witt; Tom Brökel; Thomas Brenner
  7. The 3G Standard Setting Strategy and Indigenous Innovation Policy in China: Is TD-SCDMA a Flagship? By Hui Yan
  8. The rigour of EPO's patentability criteria: An insight into the "induced withdrawals". By George Lazaridis; Bruno Van Pottelsberghe
  9. Networks, Standards and Intellectual Property Rights By Vitor Trindade; Johannes Moenius
  10. Competition in product design: An experiment exploring innovation behavior By Uwe Cantner; Werner Güth; Andreas Nicklisch; Torsten Weiland
  11. Private-collective Software Business Models: Cordinatitons and Commercialization via Licensing By Heli Koski
  12. Strategic Entry Deterrence and the Behavior of Pharmaceutical Incumbents Prior to Patent Expiration By Glenn Ellison; Sara Fisher Ellison
  13. Open Source Software Development, Innovation, and Coordination Costs By Thierry Warin; Jean-Philippe Bonardi
  14. Governance of Innovation in the Different Countries of the World By Manuel, Eduardo
  15. China and the knowledge economy : challenges and opportunities By Wang, Shuilin; Zeng, Douglas Zhihua

  1. By: Manuel, Eduardo
    Abstract: This work has as objective to approach the theme “National Innovation Systems in Angola and Mozambique”. We concluded that Angola and Mozambique need to define economics policy that have as objective to promote the growth of their GDP per capita and human development. Both government need to define strategies for promotion the internet access for enlarging of knowledge about others cultures that can help on promotion of innovation, and these government should to promote the enlarging of investigators in R&D for also promotion of innovation on divers areas such health, education, etc. And both government should not forget to promote the increase of rate of adult alphabetization that pass for promotion to access of education for people more necessitated and should not forget to promote of protection of intellectual property, and so, firms and companies can employ skilled people and through use of technology advanced can promote innovation and commercialize that, and this skilled people can too discovery and develop better technology and improve innovation system for development of the both countries on globalization era.
    Keywords: Innovation; National Innovation System
    JEL: O34 M19 O57 O32 O33 O14 O31
    Date: 2006–05–15
  2. By: Rajneesh Narula; Grazia D. Santangelo
    Abstract: This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.
    Keywords: Alliances; strategy; efficiency; R&D location
    JEL: D23 F23 O18 O32 R3
    Date: 2007
  3. By: Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: In this paper, we examine the relationship between R&D collaboration, corporate ownership, market orientation and innovation. In doing so, we classify a Swedish sample of 1,249 multinational enterprises, MNEs, on the basis of their main market, corporate ownership structure and whether their collaborators are foreign-owned or not. We then apply a knowledge production model and estimate the contribution to innovation output from regional and foreign collaboration on innovation with other firms within the group, universities, suppliers and customers, competitors and consultants, controlling for internal R&D investment, human capital, physical capital, trade, financial resources and industry classification. Empirical evidence based on cross-sectional data sheds new light on how innovation is affected by local and global technology spillover.
    Keywords: Multinational enterprises; R&D; R&D collaboration; spillovers; export; import; corporate ownership structure; community innovation survey; innovation output; micro econometrics
    JEL: D21 F23 L21 L22 O31 O32
    Date: 2007–05–02
  4. By: Nick Bloom; Mark Schankerman; John Van Reenen
    Abstract: Support for R&D subsidies relies on empirical evidence that R&D "spills over" between firms. But firm performance is affected by two countervailing R&D spillovers: positive effects from technology spillovers and negative business stealing effects from R&D by product market rivals. We develop a general framework showing that technology and product market spillovers have testable implications for a range of performance indicators, and then exploit these using distinct measures of a firm's position in technology space and product market space. Using panel data on U.S. firms between 1980 and 2001 we show that both technology and product market spillovers operate, but technology spillovers quantitatively dominate. The spillover effects are also present when we analyze three high tech sectors in finer detail. Using the model we evaluate the net spillovers from three alternative R&D subsidy policies.
    JEL: F23 L1 O31 O32 O33
    Date: 2007–04
  5. By: Tantuico, Delia S.; Zshornack, Errol Wilfred
    Abstract: Intellectual property rights-–copyrights, trademarks, patents, trade secrets, and related rights-–have become increasingly important with the advent of increased international trade, global and knowledge-based economy and fast developing technology. A strong intellectual property rights regime is necessary in order to attract foreign trade and direct investments. For this reason, the protection of intellectual property rights has become an important negotiating item in all FTAs which the United States has entered into. In view of the proposed RP-US FTA negotiations, this paper seeks to determine whether the existing intellectual property regime in the Philippines provides adequate and sufficient legal protection of intellectual property rights. It also seeks to determine whether the administrative and judicial processes are adequate and speedy and acceptable in the enforcement and protection of said rights in the light of FTAs already entered into by the United States with other countries, in general, and with Singapore, in particular, which will be the benchmark for the RP-US FTA. Other relevant issues in the protection of intellectual property rights such as the annual review of ountries by the United States Trade Representative in relation to Special 301 of the U.S. Trade Law; piracy of optical media, including books and pharmaceuticals; and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) are also discussed. The author proposes certain provisions to be added to the Intellectual Property Code; sustained, consistent and stricter implementation of intellectual property laws including more efforts at curbing piracy; and more importantly, a strong political will and a strong determination to strengthen intellectual property rights, as necessary to make the IPR regime up to par with U.S. and international.
    Keywords: World Trade Organization, investment, intellectual property rights, market access, free trade agreement (FTA), trade-related aspects of intellectual property rights (TRIPS), dispute settlement, Optical Media Act, E-commerce Law, legal protection, capability building
    Date: 2006
  6. By: Ulrich Witt (Max Planck Institute of Economics Jena, Evolutionary Economics Unit); Tom Brökel (Max Planck Institute of Economics Jena, Evolutionary Economics Unit); Thomas Brenner (Max Planck Institute of Economics Jena, Evolutionary Economics Unit)
    Abstract: This paper discusses several features of knowledge that are often considered crucial for characterizing the economic significance of knowledge: whether it is overtly accessible or tacit, whether it can be or is encoded or not, and whether it has public or private good character. It is argued that all these features depend similarly on the state of the knowledge technology, i.e. on how knowledge can be acquired, stored, used, and communicated. The different characteristics and the relationships between them are shown to correspond to different specifications of the technology, specifications that are not always made explicit in the literature.
    Keywords: knowledge, knowledge technology, tacitness, ouvertness, public goods, intellectual property rights
    JEL: O31 O34
    Date: 2007–05–07
  7. By: Hui Yan
    Abstract: In the time of “network economy”, industries and the public have stressed several “battles for dominance” between two or more rival technologies, often involving well-known firms operating in highly visible industries. In this paper, we are going to focus on the Chinese self-developed standard TD-SCDMA to perceive the implication and target of the nation’s policy and strategy. The motivation of the research starts from the interesting fact we observed: TD-SCDMA is named as the Chinese made standard, however the Chinese hold core patent technology is still about 7%, while most of the rest part is still taken by other foreign companies. The “faultage” between the small share reality and a self made standard sweet dream implies a well plotted strategy. In order to understand it, we firstly raise the question of why the Chinese government postpones the 3G decision again and again. Then we go further to probe why the standard-setting of TD-SCDMA has aroused wide attention as a strategic tool to fulfill “indigenous innovation”, and finally becomes part of national science and technology policy to increase international competitiveness? We are going to use economics theories to understand the essence of the creation of TD-SCDMA, and its relation to China’s interests.
    Keywords: 3G; Standard; Innovation: China
    JEL: O31 L96
    Date: 2007
  8. By: George Lazaridis (European Patent Office - EPO, München.); Bruno Van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels)
    Abstract: The EPO traditionally grants at least 60% of all patent applications, the rest being either withdrawn (30-35 %) or refused (5%). This paper provides quantitative evidence suggesting that up to 54% of all patent withdrawals could be considered as induced by the work of EPO examiners, and hence may be taken as a more appropriate indicator of the rigour of the EPO. “Induced withdrawals” and refusals occur for up to 23% of all applications at the EPO. This share varies according to 1) the route chosen for an EPO filing; 2) the technological field that is considered; and 3) the country of residence of the assignee. The number of claims only slightly affects the share of withdrawals. However, on average, two additional claims induce an additional communication from the EPO, which in turn prolongs the procedural duration by an additional year.
    Keywords: European Patent Office, grant, patent filing, induced withdrawals, claims, communications, examination procedure.
    JEL: K1 K3 L1 O3
    Date: 2007–04
  9. By: Vitor Trindade (Department of Economics, University of Missouri-Columbia); Johannes Moenius
    Abstract: This paper reviews issues that lie at the intersection between intellectual property rights (IPR) and network effects, especially in the context of the global economy. Some of the relevant questions are: (1) How do IPR influence the provision of goods exhibiting network effects? (2) How do network effects in turn influence the creation of intellectual property? And (3) how do aspects of the global economy interact with both IPR and network effects? We synthesize what is known from the existing literature to answer these questions.
    Keywords: Intellectual Property Rights, Network Effects, Globalization, Standards, Social Networks, Software Piracy
    JEL: D85 F12 F13 F14 L14 O34
    Date: 2007–03–27
  10. By: Uwe Cantner (University of Jena, School of Busniess and Economics); Werner Güth (Max Planck Institute of Economics Jena, Strategic Interaction Unit); Andreas Nicklisch (Max Planck Institute for Research on Collective Goods, Bonn, Germany); Torsten Weiland (Max Planck Institute of Economics Jena, Strategic Interaction Unit)
    Abstract: We experimentally investigate competition in innovation in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, engaging in risky search investments. Successful innovation is rewarded through temporary monopoly rents. Throughout the interaction, subjects receive feedback on own and other’s search success and profit margin. Partitioning subjects into subgroups of investor types reveals that the majority of subjects condition investments on the degree of competition as measured by sales shares, while for others no correlation is ascertained. Heterogeneity in individual risk attitudes and differing experiences with related search tasks may explain this finding.
    Keywords: innovation, competition, imitation, patent race
    JEL: D81 L11 O31
    Date: 2007–05–07
  11. By: Heli Koski
    Abstract: The private-collective business models that involve both private investment incentives and the production of public goods are not well understood. This empirically oriented research uses the unique data from the software industries of five European countries (Finland, Germany, Italy, Portugal and Spain) to illuminate the patterns of private, entrepreneurial provision of software placed in the public domain. The estimation results strongly suggest that the highly restrictive GPL (General Public License) works as an efficient coordination mechanism for the (leading) developers of the OSS community and spreads particularly via the firms that have participated in the OSS development projects. The software companies supplying the OSS, instead, tend not to aim at using the GPL to coordinate the further development of their own OSS. The firms are rather the origin of more flexibly licensed OSS products though gener-ally the software firms’ OSS business strategies relate to the restrictive licensing strategy choices
    Keywords: Open Source software, licensing, business strategies
    JEL: D21 D23 L23 L86
    Date: 2007–05–02
  12. By: Glenn Ellison; Sara Fisher Ellison
    Abstract: This paper develops a new approach to testing for strategic entry deterrence and applies it to the behavior of pharmaceutical incumbents just before they lose patent protection. The approach involves looking at a cross-section of markets and examining whether behavior is nonmonotonic in the size of the market. Under certain conditions, investment levels will be monotone in market size if firms are not influenced by a desire to deter entry. Strategic investments, however, may be nonmonotone because entry deterrence is unnecessary in very small markets and impossible in very large ones, resulting in overall nonmonotonic investment. The pharmaceutical data contain advertising, product proliferation, and pricing information for a sample of drugs which lost patent protection between 1986 and 1992. Among the findings consistent with an entry deterrence motivation are that incumbents in markets of intermediate size have lower levels of advertising and are more likely to reduce advertising immediately prior to patent expiration.
    JEL: L13 L65
    Date: 2007–04
  13. By: Thierry Warin; Jean-Philippe Bonardi
    Abstract: Open source is often presented as a very promising governance structure for the development of software in the Internet world. One of its greatest advantages is that it enables and integrates the flow of innovation coming from many unrelated developers. We extend previous inquiries by showing that, due to information communication problems, this governance structure is in fact more efficient for the development of incremental innovations rather than radical innovations. Implications are drawn in terms of the future of the open source system, the economics of innovation and public policy.
    Date: 2007–01
  14. By: Manuel, Eduardo
    Abstract: This paper has as objective to approach the "Governance of Innovation in the different countries of the World", using information from World Economic Forum. The improve of cooperation between richest and poorest countries and between the poorest countries (between South Africa and Zambia, for example) is necessary to extract lessons and so to solve problems at level of what is necessary, what is missing and what is falling at the progress of nations more poor in knowledge that is cause of low level of innovation and economic development.
    Keywords: Governance; Innovation; Governance of Innovation
    JEL: O38 O57 O39 M29 O31
    Date: 2006–10–09
  15. By: Wang, Shuilin; Zeng, Douglas Zhihua
    Abstract: The rapid pace of economic growth in China has been unprecedented since the start of economic reforms in late 1970s. It has delivered higher incomes and made the largest single contribution to global pove rty reduction. Measured by international poverty lines, from 1978-2004, the absolute poor population in rural areas has dropped from 250 million to 26.1 million. Such gains are impressive and have been driven largely by a set of market-oriented institutional reforms, strong investment, and effective adoption and application of various knowledge and technologies, especially foreign ones through trade and foreign direct investment. While enjoying tremendous success, China also faces many challenges that need to be addressed to sustain its long-term development. These include weak institutions, low overall educational attainment, weak indigenous innovation capacity, poor links between research and development and industries, and so on. This paper provides an analysis of some strengths, weaknesses, opportunities, and challenges to China ' s knowledge economy in the areas of economic incentives and institutional regime, human capital, innovation system, and information infrastructure.
    Keywords: Tertiary Education,Agricultural Knowledge & Information Systems,ICT Policy and Strategies,Population Policies,Technology Industry
    Date: 2007–05–01

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