nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2009‒11‒14
eleven papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Economic incongruities in the European patent system By Malwina Mejer; Bruno van Pottelsberghe de la Potterie
  2. How Do Firms Source External Knowledge for Innovation? : Analyzing Effects of Different Knowledge Sourcing Methods By Ki H. Kang; Jina Kang
  3. Invention and Transfer of Climate Change Mitigation Technologies on a Global Scale: A Study Drawing on Patent Data By Matthieu Glachant; Antoine Dechezleprêtre; Ivan Hascic; Nick Johnstone; Empirical Policy Analysis Unit, OECD Environment Directorate
  4. The Internationalization of Inventive Activity: A Gravity Model Using Patent Data By Picci, Lucio
  5. R&D Productivity and Intellectual Property Rights Protection Regimes By Joanna Poyago-Theotoky; Khemarat Talerngsri Teerasuwannajak
  6. Do external knowledge sourcing methods matter in service innovation?: analysis of South Korean service firms By Ki H. Kang; Jina Kang
  7. Intellectual Property Rights in Indian Agriculture By Jayashree Watal
  8. Contextual effects on the complementarities between R&D activities: An empirical analysis of the Korean manufacturing industry By Sungki Lee; Donghyuk Choi; Yeonbae Kim
  9. Picking the Winner? - Empirical Evidence on the Targeting of R&D Subsidies to Start-ups By Uwe Cantner; Sarah Kösters
  10. Data Games : Sharing public goods with exclusion. By Pierre Dehez; Daniela Tellone
  11. Bidding for Brains: Intellectual Property Rights and the International Migration of Knowledge Workers By Carol McAusland; Peter J. Kuhn

  1. By: Malwina Mejer (Université Libre de Bruxelles); Bruno van Pottelsberghe de la Potterie (Université Libre de Bruxelles)
    Abstract: This article argues that the consequences of the ‘fragmentation’ of the European patent system are more dramatic than the mere prohibitive costs of maintaining a patent in force in many jurisdictions. The prevalence of national jurisdictions, which are highly heterogeneous in their costs and practices, over the validity and enforcement of European patents induces both a high level of uncertainty and an intense managerial complexity which undoubtedly reduces both the effectiveness and the attractiveness of the European patent system in its mission to stimulate innovation.
    Keywords: European patent system, litigation process, enforcement, uncertainty
    JEL: K41 P14 O34
    Date: 2009
  2. By: Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: In the era of ¡®open innovation¡¯, external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration, and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has important implication for firms in selecting appropriate strategy for accessing external knowledge.
    Keywords: external knowledge, open innovation, knowledge sourcing method, technology innovation
    Date: 2009–08
  3. By: Matthieu Glachant (CERNA, Mines ParisTech); Antoine Dechezleprêtre (CERNA, Mines ParisTech); Ivan Hascic (CERNA, Mines ParisTech); Nick Johnstone; Empirical Policy Analysis Unit, OECD Environment Directorate (Empirical Policy Analysis Unit, OECD Environment Directorate)
    Abstract: Accelerating the development of less GHG intensive technologies and promoting their global diffusion - in particular in fast-growing emerging economies - is imperative in achieving the transition to a low-carbon economy. Consequently, technology is at the core of current discussions about the post-Kyoto regime. The purpose of this study is to fuel this discussion by providing an in-depth analysis of the geographic distribution of climate mitigation inventions since 1978 and their international diffusion on a global scale. We use the EPO/OECD World Patent Statistical Database (PATSTAT) which includes patents from 81 national and international patent offices. Note that the Least Developed Countries patent a negligible number of inventions, meaning that the geographical scope of the study is limited to industrialized countries and emerging economies. In this study, patent counts are used to measure the output of innovation but also the transfer of inventions across borders on the ground that an innovator patents his/her invention in a foreign country because he/she plans to exploit it commercially there. They are the only indicator available today that provides a comprehensive view on innovation and technology diffusion on a global scale. Patent data also present drawbacks. First, patents are not the only tool available to inventors to protect their inventions. Second, successful technology transfers also involve the transfer of know-how. Still one can reasonably assume that patent counts are positively correlated to the quantity of non-patented innovations and transfers. We consider 13 different classes of technologies with significant global GHG emission abatement potentials, and analyze inventive activities and international technology transfer between 1978 and 2003. The technologies considered are seven renewable energy technologies (wind, solar, geothermal, ocean energy, biomass, waste-to-energy, and hydropower), methane destruction, climate-friendly cement, energy conservation in buildings, motor vehicle fuel injection, energy-efficient lighting and Carbon Capture & Storage (CCS).
    Keywords: Climate Change, Mitigation Technologies, Patent Data
    JEL: Q5 Q55
    Date: 2009–10
  4. By: Picci, Lucio
    Abstract: This paper discusses the extent and the determinants of the internationalization of European inventive activity, between 1990 and 2005, using an innovative method to treat the information contained in the European Patent Office's Patstat database. We introduce a new set of indicators measuring internationalized patent applications that are fully coherent with the principle of fractional counting. The observed level of internationalization of inventive activities, while being rather low, has steadily increased over time. The amount of collaboration between actors residing in different countries is assessed by means of a gravity model. The amount of bilateral collaboration is positively affected by the presence of a common language, a common border and by more similar cultural characteristics. International collaboration is negatively affected by distance, with estimated elasticities that are significantly smaller than the ones that characterize international trade.
    Keywords: Gravity models, R&D, patents, internationalization
    JEL: F15 C51 O30 C24
    Date: 2009–10–15
  5. By: Joanna Poyago-Theotoky (Rimini Centre for Economic Analysis (RCEA); University of Loughborough, Department of Economics); Khemarat Talerngsri Teerasuwannajak (Faculty of Economics, Chulalongkorn University)
    Abstract: We study fi…rms' preferences towards intellectual property rights (IPR) regimes in a North-South context, using a simple duopoly model where a 'North' and a 'South' firm compete in a third market. Unlike other contributions in this fi…eld, we explicitly introduce the South's capability to undertake cost-reducing R&D, but maintain the South's inferiority in utilizing and managing its R&D. In contrast to traditional results, we show that the North may encourage lax IPR protection provided that its South rival's R&D productivity is sufficiently high, while the South may fi…nd it in its best interest to strictly enforce IPR protection if its R&D productivity is low. In this sense, our results do not support the idea of universal or uniform IPR protection regime. In addition, we …find that if fi…rms are allowed to agree on any level of information exchange when IPR protection is strictly enforced, such an exchange can always be established as long as each fi…rm is ensured that what it gets to utilize in return is sufficiently more than what it gives to its rival.
    Keywords: intellectual property rights (IPR), cost-reducing R&D, R&D productivity, information exchange
    JEL: O34 F13 O32 O38 L13 D43
    Date: 2009–01
  6. By: Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: This paper analyses the effects of different external knowledge sourcing methods on service innovation performance. We identify three external knowledge sourcing methods: informal information transfer, R&D collaboration, and technology outsourcing. Three hypotheses are established to examine the relationship between these three external knowledge sourcing methods and service innovation. Our result shows that the relationship between the extent of external knowledge sourcing and service innovation performance varies depending on the particular external knowledge sourcing method. This research grants important implication to firms in selecting an appropriate external knowledge sourcing strategy in service industry.
    Keywords: service innovation, external knowledge sourcing method, informal information transfer, R&D collaboration, technology outsourcing
    Date: 2009–08
  7. By: Jayashree Watal
    Abstract: This paper distinguishes the Intellectual Property Rights relevant to agriculture and explain these rights. The international intellectual property law for these rights will be described. India's international obligations vis-a-vis her own IPR laws has been explained. Analysis of the public debate in India on the controversial IPRs and the status of the legislation on these is given. This paper concludes conclude with prescriptions for public policy on IPRs and agriculture in India. [ICRIER WP no.44].
    Keywords: India, trade, paptents, countries, plants, animals, industrially, industry, technology, geographical indications, Basmati, rice, laws, industrial property, World Trade Organization (WTO), TRIPS, agriculture, IPR, intellectual property rights, legislation,
    Date: 2009
  8. By: Sungki Lee; Donghyuk Choi; Yeonbae Kim (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: Firms undertake various R&D activities to generate commercializable innovations and to create and sustain competitive advantage. However, mere exploitation of various R&D opportunities has no conclusive impacts on a firm¡¯s competitive advantage in innovation, since R&D activities might closely interact with each other and their appropriate combination would have a synergy effect on a firm¡¯s innovation performance. The aim of this paper is to explore various contextual factors behind synergy effects derived from interactions between R&D activities based on the economic and technological sources of the R&D complementarities, such as absorptive capacity, knowledge flows, and uncertainty, as well as to examine the existence of complementarities between corporate R&D activities, using the 2004 innovation survey data of Korean manufacturing industries. The corporate R&D activities considered in this study are in-house R&D, R&D cooperation, and commissioned R&D. Our research concludes that there exists a complementary relationship between a firm¡¯s internal R&D and R&D cooperation activity. In addition, our study discovered that the complementarity between R&D activities relies on the organizational contextualities?a firm¡¯s cumulative patent stocks, perceived level of imitation risk, experience of external knowledge acquisition, and information inflows from public research institutes and universities?that lie hidden under the firm-specific activities.
    Keywords: Contextuality, Complementarity, Innovation, In-house R&D, R&D cooperation, Commissioned R&D
    Date: 2009–09
  9. By: Uwe Cantner (Department of Economics, Friedrich Schiller University of Jena); Sarah Kösters (DFG RTG 1411 "The Economics of Innovative Change", Friedrich Schiller University of Jena)
    Abstract: This paper investigates the allocation of R&D subsidies given to start-ups. Considering the coexistence of various R&D project schemes, we take an aggregate view and analyze the determinants of the receipt of (any) R&D subsidies within the first three business years of the start-ups. We argue that policymakers and funding authorities follow a strategy of "picking the winner". Analyzing a unique data set of start-ups in the East German state of Thuringia, we conduct logistic regressions and find ambiguous support. R&D subsidies are given to start-ups with innovative business ideas, especially academic spin-offs. On the other hand, the ambitions and the patent stock of the founder(s) do not decide the receipt of R&D subsidies. These insights into the overall allocation of R&D subsidies are important since they have implications for policy effectiveness and efficiency. The implied difficulties of policy targeting fundamentally question the massive subsidization of private R&D.
    Keywords: Start-ups, R&D subsidies, Subsidy allocation
    JEL: O38 L26 L52
    Date: 2009–11–09
  10. By: Pierre Dehez; Daniela Tellone
    Abstract: A group of firms consider collaborating on a project which requires a combination of elements which are owned by some of them. These elements are nonrival but excludable goods i.e. public goods with exclusion like for instance knowledge, data or informations, patents or copyrights. We address the question of how firms should be compensated for the goods they own. We shown that this problem can be framed as a cost sharing game to which standard allocation rules like the Shapley value, the nucleolus or accountings formulas can be applied and compared. Our analysis is inspired by the need for a cooperation between European chemical firms within the regulation program REACH which requires them to submit by 2018 a detailed analysis of the substances they produce or import.
    Keywords: cost sharing, Shapley value, core, nucleolus.
    JEL: C71 D46 M41
    Date: 2009
  11. By: Carol McAusland; Peter J. Kuhn
    Abstract: We introduce international mobility of knowledge workers into a model of Nash equilibrium IPR policy choice among countries. We show that governments have incentives to use IPRs in a bidding war for global talent, resulting in Nash equilibrium IPRs that can be too high, rather than too low, from a global welfare perspective. These incentives become stronger as developing countries grow in size and wealth, thus allowing them to prevent the 'poaching' of their 'brains' by larger, wealthier markets.
    JEL: F22 J61 O34
    Date: 2009–11

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