nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2010‒06‒11
eleven papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Are Patent Brokers a Possible First Best? By Mario Benassi; Daniela Corsaro; Guido Geenen
  2. Strategic inputs into patent pools By Justus Baron; Henry Delcamp
  3. Essential patents in pools: Is value intrinsinc or induced ? By Henry Delcamp
  4. Licensing a common value innovation when signaling strength may backfire By Cuihong Fan; Byoung Heon Jun; Elmar G. Wolfstetter
  5. Inventor collaboration over distance – a comparison of academic and corporate patents By Anja Dettmann; Sidonia von Proff
  6. Assessing Indicators of Patent Quality: Complex vs. Discrete Technologies By Justus Baron; Henry Delcamp
  7. What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data By Antoine Dechezleprêtre; Matthieu Glachant; Yann Ménière
  8. Quality Competition or Quality Cooperation? License-Type and the Strategic Nature of Open Source vs. Closed Source Business Models By Sebastian von Engelhardt
  9. Invention and Transfer of Climate Change Mitigation Technologies on a Global Scale: A Study Drawing on Patent Data By Antoine Dechezleprêtre; Matthieu Glachant; Ivan Hascic; Nick Johnstone; Yann Ménière
  10. University Education, Public Research and Employment Growth in Regions – An Empirical Study of Germany By Thomas Brenner; Charlotte Schlump
  11. Where do we go from here? Food for thought on academic papers in business research By M. GEUENS;

  1. By: Mario Benassi (University of Milan); Daniela Corsaro (Università della Svizzera Italiana); Guido Geenen (University of Milan)
    Abstract: Licensing and reassignment of patents occur either directly or with the assistance of a patent broker. Building forth on previous research on the topic, we investigate under which conditions patent brokers can be a first best. First, we discuss structural reasons that can make patent brokers a preferable option in extracting value from patents. Second, we argue that patent brokers do have specific competences that make their presence necessary. By discussing most relevant managerial theories, we formulate specific hypotheses to be tested empirically. We also offer thoughts on a possible research design as to investigate patent brokers.
    Keywords: IP, brokerage, patents, licensing, technology transfer,
    Date: 2010–01–01
  2. By: Justus Baron (CERNA - Centre d'économie industrielle - Mines ParisTech); Henry Delcamp (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: This article explores what factors determine the decision of a patent pool to accept new inputs. We propose a dynamic analysis of 1337 U.S. patent inputs into 7 important pools. This analysis highlights a trade-off between firm and patent characteristics as the determinants of inclusion of patents into pools. For instance we prove that firms already member of the pool or holding large patent portfolios are able to include lower quality patents. These findings can be explained both by bargaining power and information asymmetry. In particular, as measured by a new indicator, insiders and firms practicing the technology file patents that are better aligned with the criteria of essentiality.
    Date: 2010
  3. By: Henry Delcamp (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: This paper analyzes empirically the value - as measured by patent citations - of a set of 1363 essential patents belonging to 9 different patent pools. We find that pooled patents receive more cites than control patents having the same characteristics but not included in a pool. This difference stems only partly from the pools' ability to select the most cited patents. Indeed we show that being included in a pool also tends to increase the value of patents. This induced effect reflects the incentive for patent owners to join a pool. We analyze it in details in order to better understand the drivers of enhanced patent value.
    Date: 2010
  4. By: Cuihong Fan (Shanghi University of Finance and Economics School of Economics); Byoung Heon Jun (Korea University, Seoul); Elmar G. Wolfstetter (Humboldt-University at Berlin and Korea University, Seoul)
    Abstract: This paper reconsiders the licensing of a common value innovation to a downstream duopoly, assuming a dual licensing scheme that combines a first-price license auction with royalty contracts for losers. Prior to bidding firms observe imperfect signals of the expected cost reduction; after the auction the winning bid is made public. Bidders may signal strength to their rivals through aggressive bidding, which may however backfire and mislead the innovator to set an excessively high royalty rate. We provide sufficient conditions for existence of monotone bidding strategies and for the profitability of combining auctions and royalty contracts for losers.
    Keywords: Patents, licensing, auctions, royalty, innovation, R&D, mechanism design
    JEL: D21 D43 D44 D45
    Date: 2010
  5. By: Anja Dettmann (Department of Geography, Philipps University Marburg); Sidonia von Proff (Department of Geography, Philipps University Marburg)
    Abstract: The paper compares academic and corporate patents in Germany to shed light on the geographical distribution of the inventors. The residences of the inventors show different patterns in the two datasets. Furthermore, we analyze the spatial distance between inventors for patents invented in collaboration and give insights into the distance’s change over a time period of 14 years. The distance between collaborating inventors of corporate patents exceeds that of inventors of academic patents. In spite of the rise of ICT and cheap passenger transportation the collaboration distances have not increased. This supports earlier literature on the importance of proximity in innovation.
    Keywords: inventor networks, Germany, academic patents, research collaboration
    JEL: R12 O34 L14
    Date: 2010–05
  6. By: Justus Baron (CERNA - Centre d'économie industrielle - Mines ParisTech); Henry Delcamp (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: This article compares indicators of patent quality in complex and discrete technologies using factor analysis and econometric methods. The application of common indicators such as forward citations to complex technologies has repeatedly been put into question. We study the interchangeability of indicators and their capacity to predict litigation on a sample of 9255 patents. Our results do not support the criticism. Even though there are significant differences in the behavior of indicators between samples of complex and discrete patents, issues of complex innovation do not seem to affect the interpretability of quality indicators. Consistently, both forward citations and a compound quality indicator perform equally well for complex and discrete technologies in predicting the likelihood of litigation.
    Date: 2010
  7. By: Antoine Dechezleprêtre (CERNA - Centre d'économie industrielle - Mines ParisTech, Grantham Research Institute on Climate Change and the Environment - London School of Economics and Political Science); Matthieu Glachant (CERNA - Centre d'économie industrielle - Mines ParisTech); Yann Ménière (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: Using patent data from 66 countries for the period 1990–2003, we characterize the factors which promote or hinder the international diffusion of climate-friendly technologies on a global scale. Regression results show that technology-specific capabilities of the recipient countries are determinant factors. In contrast, the general level of education is less important. We also show that restrictions to international trade—e.g., high tariff rates—and to a lesser extent lax intellectual property regimes negatively influence the international diffusion of patented knowledge. A counter-intuitive result is that barriers to foreign direct investments can promote transfers. We discuss different possible interpretations.
    Keywords: Climate change, technology diffusion, technology transfer
    Date: 2010
  8. By: Sebastian von Engelhardt (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: In the ICT sector, product-software is an important factor for the quality of the products (e.g. cell phones). In this context, open source software enables firms to avoid quality competition as they can cooperate on quality without an explicit contract. The economics of open source (OS) versus closed source (CS) business models are analyzed in a general two- stage model that combines aspects of non-cooperative R&D with the theory of differentiated oligopolies: In stage one, firms develop software, either as OS or CS, or as a an OS-CS-mix if the license allows. In stage two, firms bundle this with complementary products and compete à la Cournot. The model allows for horizontal product differentiation in stage two. The finding are: 1.) While CS-decisions are always strategic substitutes, OS-decisions can be strategic complements. Furthermore, CS is a strategic substitute to OS and vice versa. 2.) The type of OS-license plays a crucial role: only if the license prohibits a direct OS-CS code mix (like the GPL), then Nash-equilibria with firms producing OS code exist for all parameters. 3.) In the equilibrium of a mixed industry with restricted licenses, OS-firms offer lower quality than their CS-rivals.
    Keywords: open source, commercial open source, Cournot, R&D
    JEL: D43 L17 O34
    Date: 2010–06–03
  9. By: Antoine Dechezleprêtre (CERNA - Centre d'économie industrielle - Mines ParisTech, Grantham Research Institute on Climate Change and the Environment - London School of Economics and Political Science); Matthieu Glachant (CERNA - Centre d'économie industrielle - Mines ParisTech); Ivan Hascic (chercheur indépendant - Casa de Velázquez); Nick Johnstone (chercheur indépendant - Casa de Velázquez); Yann Ménière (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: This paper uses the EPO/OECD World Patent Statistical Database (PATSTAT) to provide a quantitative description of the geographic distribution of inventions in thirteen climate mitigation technologies since 1978 and their international diffusion on a global scale. Statistics suggest that innovation has mostly been driven by energy prices until 1990. Since then, environmental policies, and climate policies more recently, have accelerated the pace of innovation. Innovation is highly concentrated in three countries—Japan, Germany and the USA—which account for 60% of total innovations. Surprisingly, the innovation performance of emerging economies is far from being negligible as China and South Korea together represent about 15% of total inventions. However, they export much less inventions than industrialized countries, suggesting their inventions have less value. More generally, international transfers mostly occur between developed countries (73% of exported inventions). Exports from developed countries to emerging economies are still limited (22%) but are growing rapidly, especially to China.
    Date: 2010
  10. By: Thomas Brenner (Department of Geography, Philipps University Marburg); Charlotte Schlump (Department of Geography, Philipps University Marburg)
    Abstract: Universities and research institutes are seen as important drivers of the regional economy. Their impact on regional entrepreneurial and innovation activity is well documented. On the other hand, their influence on regional employment growth is less researched. This paper provides an extensive empirical analysis of the relationship between the education of university graduates and employees in research institutes and the growth of employment in a region. The analysis is done for nine industries separately. We find that university graduates have a significant influence on employment growth in several industries, while an influence of public research institutes is found only for a few industries. For most control variables the findings differ between manufacturing and service industries. Such a clear difference between the two types of industries is not found for university graduates and public research institutes.
    Keywords: Universities, Research Institutes, Regional Employment Growth
    JEL: H52 I2 J20
    Date: 2010–05
  11. By: M. GEUENS;
    Abstract: In this paper I comment on some of the adverse practices in business research publications. First, we seem to have lost touch with business practice and have narrowed our target group to fellow academics only, reducing the production of useful knowledge. Second, the objectives of our publications are narrowed to impact and citations. This leads to a strict focus on pathbreaking theories and a denigration of replication and qualitative studies. Third, an obsession with the .05 significance level and corroborating findings have left researchers with full file drawers of unpublished papers and could leave journals with a high rate of type I error papers. Fourth, complex, lengthy articles, the importance of carefully crafting a story around our research and a variety of style guidelines make us less productive than we could be. Finally, a blind reliance on ISI’s impact and citations scores may not do justice to a researcher’s real contribution
    Date: 2010–03

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