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on Intellectual Property Rights |
| By: | Chu, Angus C. |
| Abstract: | This paper develops an R&D-growth model and calibrates the model to aggregate data of the US economy to quantify a structural relationship between patent length, R&D and consumption. Under parameter values that match the empirical flow-profit depreciation rate of patents and other key features of the US economy, extending the patent length beyond 20 years leads to a negligible increase in R&D despite equilibrium R&D underinvestment. In contrast, shortening the patent length leads to a significant reduction in R&D and consumption. Finally, this paper also analytically derives and quantifies a dynamic distortionary effect of patent length on capital investment. |
| Keywords: | innovation-driven growth; intellectual property rights; patent length; R&D |
| JEL: | O34 O31 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:16918&r=ipr |
| By: | Gordanier, John; Chun-Hui, Miao |
| Abstract: | We model an innovator's choice of payment scheme and duration as a joint decision in a multi-period licensing game with potential sequential innovations and some irreversibility of technology transfer. We find that it may be optimal to license the innovation for less than the full length of the patent and that royalty contracts can be used to overcome a time-consistency problem faced by the innovator. Our results suggest that licensing contracts based on royalty have a longer duration than fixed-fee licenses and are more likely to be used in industries where sequential innovations are frequent. |
| Keywords: | Innovation; Licensing; Patent; Royalty; Technology Leakage; Time Consistency. |
| JEL: | D86 L13 L24 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:16882&r=ipr |
| By: | Pitelis, Christos; Panagopoulosi, Andreas |
| Abstract: | We aim to model the "optimal" choice on internal versus external innovation for value capture of different-sized firms, in the context of multi-level bargaining. We find that size differentials are a major determinant for the choice in hand. We derive implications for "closed" versus "open" innovation approaches, and we discuss managerial practice, limitations and possible extensions. |
| Keywords: | Innovation, Firm Size, Value Capture, Patent Portfolios |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:dynreg42&r=ipr |
| By: | Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); McKelvey, Maureen (RIDE and Institute of Innovation and Entrepreneurship) |
| Abstract: | This paper examines how the institutional set-up of public research organisations (PROs) affects how firms are able to utilise direct interaction with publicly employed researchers. We argue that the role that PRO interaction has to play in the firm’s innovation processes depend on the organisational and cognitive distances between the firm and the PRO. In particular, this paper empirically explores how Swedish engineering firms assess the value of R&D partnerships with universities and research institutes. Our theoretical discussion of organizational distance suggests that managers should perceive institute contacts to be more strongly associated with short-term R&D projects than university contacts. This hypothesis cannot be verified. Following from our discussion of cognitive distance, we find that firms with advanced R&D capabilities obtain differential benefits. Their interaction with universities provides impulses for innovation and offers opportunities to learn to a greater extent than contacts with public research institutes. However, firms with less advanced R&D capabilities perceive no significant differences between university and institute interaction. Thus, both organizational and cognitive distance affect firms’ interactions with PROs, and our results have implications for the current push in Europe to reform universities and institutes. |
| Keywords: | public research organisations; organisation of public research; universities; institutes; R&D interaction |
| JEL: | M21 O31 O32 |
| Date: | 2009–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0188&r=ipr |
| By: | Sharon Belenzon; Tomer Berkovitz; Patrick Bolton |
| Abstract: | This paper examines the relation between ownership, corporate form, and innovation for a cross-section of private and publicly traded innovating firms in the US and 15 European countries. A striking novel observation emerges from our analysis: while most innovating firms in the US are publicly traded conglomerates, a substantial fraction of innovation is concentrated in private firms and in business groups in continental European countries. We find virtually no variation across US industries in the corporate form of innovating firms, but a substantial variation across industries in continental European countries, where business groups tend to be concentrated in industries with a slower and more fundamental innovation cycle and where intellectual protection of innovators seems to be of paramount importance. Our findings suggest that innovative companies choose the corporate form most conducive to R&D, as predicted by the Coasian view of how firms form. This is especially true in Europe, where there are fewer regulatory hurdles to the formation of business groups and hybrid corporate forms. It is less the case in the US, where conglomerates are generally favored. |
| JEL: | O16 O31 O32 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15304&r=ipr |
| By: | Funke, Michael (BOFIT); Yu, Hao (BOFIT) |
| Abstract: | In this paper we analyse the impact of R&D on total factor productivity across Chinese provinces. We introduce innovations explicitly into a production function and evaluate their contribution to economic growth in 1993 - 2006. The empirical results highlight the importance and the interaction between local and external research. The evidence indicates that growth in China is not explained simply by factor input accumulation. |
| Keywords: | China; R&D; R&D Spillovers; patents; regional economic growth; semiparametric estimators |
| JEL: | C14 O47 R11 R12 |
| Date: | 2009–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2009_010&r=ipr |
| By: | Shawn Kantor; Alexander Whalley |
| Abstract: | In this paper we quantify the extent and magnitude of agglomeration spillovers from a formal institution whose sole mission is the creation and dissemination of knowledge -- the research university. We use the fact that universities follow a fixed endowment spending policy based on the market value of their endowments to identify the causal effect of the density of university activity on labor income in the non-education sector in large urban counties. Our instrument for university expenditures is based on the interaction between each university's initial endowment level at the start of the study period and the variation in stock market shocks over the course of the study period. We find modest but statistically significant spillover effects of university activity. The estimates indicate that a 10% increase in higher education spending increases local non-education sector labor income by about 0.5%. As the implied elasticity is no larger than what previous work finds for agglomeration spillovers arising from local economic activity in general, university activity does not appear to make a place any more productive than other forms of economic activity. We do find, however, that the magnitude of the spillover is significantly larger for firms that are technologically closer to universities in terms of citing patents generated by universities in their own patents and sharing a labor market with higher education. |
| JEL: | I2 O3 R1 |
| Date: | 2009–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15299&r=ipr |
| By: | Margit Osterloh; Bruno S. Frey |
| Abstract: | Peer reviews and rankings today are the backbone of research governance, but recently came under scrutiny. They take explicitly or implicitly agency theory as a theoretical basis. The emerging psychological economics opens a new perspective. As scholarly research is a mainly curiosity driven endeavor, we include intrinsic motivation and supportive feedback by the peers as important determinants of scholarly behavior. We discuss whether a stronger emphasis on selection and socialization offers an alternative to the present regime of academic rankings. |
| Keywords: | peer reviews; rankings; research governance; agency theory; psychological economics; new public management; economics of science; control theory |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:cra:wpaper:2009-17&r=ipr |
| By: | Herings P. Jean-Jacques; Peeters Ronald; Yang Michael S. (METEOR) |
| Abstract: | This paper uses a dynamic stochastic model to solve for the optimal pricing policy of themusic recording companies in the presence of P2P file-sharing networks eroding their CDsales. We employ a policy iteration algorithm on a discretized state space to numericallycompute the optimal price policy. The realistically calibrated model reflects the real-worldfigures we observe and provides estimates of figures we can not observe, such as changesin total welfare. The results suggest that, thanks to the existence of P2P networks, totalwelfare in 2008 in the U.S. is about $25.6 billion more per annum than in 1999 before P2Pwas introduced. Moreover, the results predict that the current trend of decreasing CDsales will continue until around the year 2020 when it will stabilize at around 231.2 millioncopies per year, comparing to the industry all-time high of 938.9 million in 1999. Thecomparative static analysis shows that full enforcement of intellectual property rights,although helpful for the industrial profit, may have adverse effect on total welfare. |
| Keywords: | microeconomics ; |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamet:2009036&r=ipr |