nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2011‒06‒11
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Corporate taxes and the location of intellectual property By Griffith, Rachel; Miller, Helen; O'Connell, Martin
  2. Impact of University Intellectual Property Policy on the Performance of University-Industry Research Collaboration By Okamuro, Hiroyuki; Nishimura, Junichi
  3. University patenting, licensing and technology transfer: how organizational context and available resources determine performance. By Manuel Mira Godinho; Rui Cartaxo
  4. State-led technological development: A case of China's nanotechnology development By Huang, Can; Wu, Yilin
  5. The Structure of the R&D Lag in Japanese Firms: R&D project, patent application and commercial use (Japanese) By SUZUKI Jun
  6. Is distance dying at last? Falling home bias in fixed effects models of patent citations By Rachel Griffith; Sokbae 'Simon' Lee; John Van Reenen

  1. By: Griffith, Rachel; Miller, Helen; O'Connell, Martin
    Abstract: The literature suggests that tax rates on mobile activities should fall to zero. Intellectual property is very mobile and has grown in importance. Firms can use intellectual property to shift income offshore and reduce their corporate income tax liability. Yet most intellectual property is held in relatively high tax countries. We estimate the impact of corporate taxes on where firms hold patents. We consider domestic and international taxes, and control for the potential non-tax costs and benefits associated with different locations. We allow heterogeneity across industries, firm size and, most importantly, unobservable patent specific heterogeneity in the responsiveness of patent location to tax. Our results suggest that, on average, corporate tax rates have a negative impact on the likelihood of a firm choosing a location, and that there is substantial heterogeneity in responses. We simulate the impact of recent reforms that apply a lower tax rate to patent income, finding that they attract patent income but result in losses in government revenues.
    Keywords: corporate tax; intellectual property; multinational firms; Patent Box
    JEL: F21 F23 H3 O3
    Date: 2011–06
  2. By: Okamuro, Hiroyuki; Nishimura, Junichi
    Abstract: Despite various expected advantages, university-industry research collaboration (UIC), a relationship between two different worlds, often faces serious difficulties. Thus, the performance of UIC depends on the research partners’ strategies to bridge the gaps between them according to the institutional environment. In Japan, UIC has developed rapidly since the late 1990s based on drastic institutional changes regarding universities. We pay special attention to the role of the university intellectual property (IP) policy introduced after 2003 and empirically examine its impact on the performance of UIC projects. A clear and equitable IP policy that can be applied flexibly to the needs of partners would be optimal for a UIC to be efficiently managed. Otherwise, the project might face serious conflicts of interests and low incentive for cooperation. Using a sample of Japanese firms from our original survey, we find that the IP policy of partner universities indeed has a positive and significant impact on various performances of UIC projects, controlling for firm and project characteristics and considering potential selection bias from UIC participation.
    Keywords: university, intellectual property policy, research collaboration, project performance, Japan
    JEL: D23 L24 O32 O34
    Date: 2011–05
  3. By: Manuel Mira Godinho (UECE and ISEG/UTL); Rui Cartaxo (ISEG/UTL)
    Abstract: The paper assesses the performance of the technology licensing offices (TLO) and technology transfer offices (TTO) which have been active in Portuguese higher education institutions. Data stemming from a survey of these entities was analyzed in successive steps through factor analysis, cluster analysis and estimation of a model using the Partial-Least Squares methodology. It is shown that the institutional nature of each of the surveyed organizations implies different behaviours and outcomes. Further it has also became clear that the type of resources and activities in the surveyed organizations determine both their “primary outcome” (patent applications and technology transfer processes) and their “final outcome” (technology licensing contracts and technology-based spin-offs). The results of this paper might be particularly relevant for other similar economies as Portugal where high-tech and knowledge-intensive industries have not been dominant.
    Keywords: technology transfer; university-industry relationships; university patenting; university spin-offs
    JEL: O32 O34 I23
    Date: 2011
  4. By: Huang, Can (UNU-MERIT, and Maastricht University); Wu, Yilin (Center for Applied Statistic and School of Statistics, Renmin University of China)
    Abstract: We analyze the nanotechnology patent applications filed in China from 1998 to 2008 and find that the extraordinary nanotechnology development in China has been primarily promoted by the public sector but not driven by industry and market force. This finding implies that developing countries such as China with public research capacity and commitment to technological development can make rapid progress in basic research of emerging technologies, but it remains uncertain whether and when local industry can benefit from public R&D investment to actively develop indigenous innovation.
    Keywords: New Technologies, Nanotechnology, Asia, China, R&D, Patents, State-led R&D, Innovation, R&D Investment
    JEL: O14 O33 O38
    Date: 2011
  5. By: SUZUKI Jun
    Abstract: The R&D lag consists of several different types of time periods, and each of these could have different characteristics and distribution. Based on RIETI Inventor Survey data, we have analyzed on a continuous stretch of time the terms in the R&D process, i.e., from the beginning of the R&D project to the stage of patent application , as well as from the stage of patent application to the beginning of commercial use of the patented technology. The data show that each of the time periods has very skewed distribution in the length, and the sum of the time periods yields 33 months for the median value. Our results show that the factors related to the decision on the commercial use of the patent are largely independent with respect to the factors related to the duration of the lead time to the beginning of the use. The decision on the commercial use is mostly related to the technological importance (advancement) of the patent. On the other hand, the lead time to the stage of commercial use is closely related to the size of the R&D project and the strategy of the firm. We have not found tangible evidence that supports the view that there has been a general trend of either less time required to complete an R&D project or that R&D projects are being completed more quickly. Meanwhile, our results suggest that the change in the patent system in 1997 caused a shortening in the lead time to the commercial use of the patent in Japan.
    Date: 2011–01
  6. By: Rachel Griffith (Institute for Fiscal Studies and University of Manchester); Sokbae 'Simon' Lee (Institute for Fiscal Studies and Seoul National University); John Van Reenen
    Abstract: <p>We examine the "home bias" of knowledge spillovers (the idea that knowledge spreads more slowly over international boundaries than within them) as measured by the speed of patent citations. We present econometric evidence that the geographical localization of knowledge spillovers has fallen over time, as we would expect from the dramatic fall in communication and travel costs. Our proposed estimator controls for correlated fixed effects and censoring in duration models and we apply it to data on over two million patent citations between 1975 and 1999. Home bias is exaggerated in models that do not control for fixed effects. The fall in home bias over time is weaker for the pharmaceuticals and information/communication technology sectors where agglomeration externalities may remain strong.</p>
    Date: 2011–05

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