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on Intellectual Property Rights |
| By: | Rufus Pollock |
| Abstract: | An extensive empirical literature indicates that, even without formal intellectual property rights, innovators enjoy a variety of first-mover advantages and that `imitation' is itself a costly activity. There is also accumulating evidence that an `open' approach to knowledge production can deliver substantial efficiency advantages. This paper introduces a formal framework incorporating all of these factors. We examine the relative performance of an `open' versus a `closed' (proprietary) regime, and explicitly characterise the circumstances in which an open approach, despite its effect on facilitating imitation, results in a higher level of innovation. |
| Keywords: | Innovation, Imitation, Intellectual Property, Openness, Open Source |
| JEL: | L17 L5 O3 |
| Date: | 2008–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:eei:rpaper:eeri_rp_2008_20&r=ipr |
| By: | Baker, Scott (University of North Carolina, School of Law); Lee, Pak Yee (University of Leicester,Department of Economics); Mezzetti, Claudio (University of Warwick,Department of Economics) |
| Abstract: | This paper models the disclosure of knowledge via licensing to outsiders or fringe firms as a threat, useful in ensuring firms keep their commitments. We show that firms holding intellectual property are better able to enforce agreements than firms that don't. In markets requiring innovation to make a product, IP disclosure presents a more powerful threat than entry by the punishing firm alone. Occasionally, a punishing firm won't be able to translate its intellectual property into a full-blown product, making it impossible for it to enter the cheating firm's market and punish. Even if it can't make a product itself, the punishing firm can always credibly threaten to license the intellectual property it has on hand to someone else. With this intellectual property as a springboard, chances are at least one fringe firm will be able to do the translation, make the product and enter the cheating firm's market. In short, the potential for licensing increases the likelihood of punishment for uncooperative behavior.In the model, firms contract explicitly to ex-change knowledge and tacitly to coordinate the introduction of innovations to the marketplace. We find conditions under which firms can self-enforce both agreements. The enforcement conditions are weaker when (1) firms possess knowledge and (2) knowledge is easily transferable to other firms. The disclosure threat has implications for antitrust law generally, which are considered. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:881&r=ipr |
| By: | James D. Adams; J. Roger Clemmons |
| Abstract: | This article is a guide to the NBER-Rensselaer Scientific Papers Database, which includes more than 2.5 million scientific publications and over 21 million citations to those papers. The data cover an important sample of 110 top U.S. universities and 200 top U.S.-based R&D-performing firms during the period 1981-1999. This article describes the file system which comprises the database, explains the variables included in the files, and discusses the functions of the various files. It includes numerous descriptive tables, as well as graphs of the data in the time series dimension. In addition, it discusses limitations and strengths of the data as well as some questions that the data might be used to address. |
| JEL: | D2 O3 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14575&r=ipr |
| By: | Michael D. König (ETH Zurich); tefano Battiston (ETH Zurich); Mauro Napoletano (Observatoire Français des Conjonctures Économiques); Frank Schweitzer (ETH Zurich) |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:0831&r=ipr |
| By: | Jeroen C.J.M. van den Bergh (VU University Amsterdam, and Autonomous University of Barcelona); Paolo Zeppini-Rossi (University of Amsterdam) |
| Abstract: | We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the combination of two existing modules with the objective to optimize the net benefits of diversity. The model takes into account increasing returns to scale and the effect of different dimensions of diversity on the probability of emergence of a third option. We obtain analytical solutions describing the dynamic behaviour of the values of the options. Next we optimize diversity by trading off the benefits of diversity (due to recombinant innovation) and the benefits associated with returns to scale. We derive conditions for optimal diversity under different regimes of returns to scale. When the investment time horizon is beyond a threshold value, the best choice becomes diversity. This threshold will be larger the higher the returns to scale. |
| Keywords: | balance; diversity; increasing returns; recombinant innovation; scale effects |
| JEL: | B52 C61 O31 Q55 |
| Date: | 2008–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20080091&r=ipr |
| By: | Yongmin Chen; Ignatius J. Horstmann; James R. Markusen |
| Abstract: | There exist two approaches in the literature concerning the multinational firm's mode choice for foreign production between an owned subsidiary and a licensing contract. One approach considers environments where the firm is transferring primarily knowledge-based assets. An important assumption there is that the relevant knowledge is absorbed by the local manager or licensee over the course of time: knowledge is non-excludable. More recently, a number of influential papers have adopted a property-right view of the firm, assuming the application abroad of physical capital, the owner of which retains full and exclusive rights to the capital should a relationship break down. In this paper we combine both forms of capital assets in a single model. The model predicts that foreign direct investment (owned subsidiaries) is more likely than licensing when the ratio of knowledge capital to physical capital is high, or when market value is high relative to the book value of capital (high Tobin's-Q). |
| JEL: | F2 F23 L2 L22 L24 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14515&r=ipr |
| By: | Amanor-Boadu, Vincent; Metla, Chandra Mohan Reddy |
| Abstract: | In this study, we assess the relationships between the demographic characteristics of researchers and their perspectives on entrepreneurship and the commercialization of their inventions, and analyze the relationship between faculty perceptions of university commercialization policies and their entrepreneurial orientation. We conclude that there is a need for effective educational programs to address each of the issues and increase awareness among faculty and researchers. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6741&r=ipr |
| By: | Whitacre, Brian |
| Abstract: | This paper examines the shifting influence of household characteristics and telecommunications infrastructure on the residential broadband adoption decision for Oklahoma residents between 2003 and 2006. In particular, the spread of wired telecommunications infrastructure (namely cable Internet and Digital Subscriber Lines (DSL)) is examined, along with the effect that this diffusion has had on broadband access rates. The data indicates that the gap in broadband access rates between rural and urban areas has remained relatively constant over this period despite increased levels of cable and DSL throughout the state. In addition, an inter-temporal decomposition shows that the increasing levels of infrastructure are not the dominant cause of higher broadband rates over time. Instead, shifting returns to specific characteristics (namely income) are found to be the primary contributors. |
| Keywords: | Broadband, Internet, Temporal Diffusion, Public Economics, Research and Development/Tech Change/Emerging Technologies, R11, O18, C1, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saeaed:6934&r=ipr |
| By: | Jacques Mairesse; Benoit Mulkay |
| Abstract: | This paper is an attempt to assess the existence and magnitude of local research spillovers in France. We rely on the model of an extended production function (Cobb-Douglas and Translog) with both local and neighborhood R&D capital stocks. We estimate this model on 312 employment areas as of 1999, first for the whole economy, then separately for five large manufacturing industries. The estimated elasticities of productivity with respect to R&D capital are significant and plausible, both within own-area and across neighboring areas as well as within own-industry, but they are weaker across different industries. |
| JEL: | C21 O30 O32 O47 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14552&r=ipr |