nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2011‒11‒28
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Patent Disclosure in Standard Setting By Bernhard Ganglmair; Emanuele Tarantino
  2. Industry-science connections in agriculture: Do public science collaborations and knowledge flows contribute to firm-level agricultural research productivity? By Toole, Andrew A.; King, John L.
  3. The impact of public basic research on industrial innovation: Evidence from the pharmaceutical industry By Toole, Andrew A.
  4. Market Size and Pharmaceutical Innovation By Dubois, Pierre; de Mouzon, Olivier; Scott Morton, Fiona; Seabright, Paul
  5. The impact of West-German universities on regional innovation activities: A social network analysis By Meyborg, Mirja
  6. Floss firms, users and communities: a viable match? By Nicolas Jullien; Jean-Benoît Zimmermann

  1. By: Bernhard Ganglmair (Jindal School of Management, University of Texas at Dallas); Emanuele Tarantino (Department of Economics, University of Bologna)
    Abstract: We present a model of industry standard setting with two-sided asymmetric information about the existence of intellectual property. We provide an equilibrium analysis of (a) firms' incentives to communicate ideas for improvements of an industry standard, and (b) firms' decisions to disclose the existence of intellectual property to other participants of the standardization process.
    Keywords: patent holdup; patent disclosure; standard setting organizations; industry standards; disclosure rules; conversation; asymmetric information; Bertrand competition.
    JEL: D71 L15 O34
    Date: 2011–10
  2. By: Toole, Andrew A.; King, John L.
    Abstract: Prior research shows long-run productivity growth in agriculture is associated with increases in the stock of public scientific knowledge and private patented inventions. However, private inventions may be a function of the stock of public knowledge. In this paper, we examine the possibility that public knowledge contributes to productivity through its relationship with private sector invention. Our analysis identifies connections between the stock of public knowledge and private firm R&D and examines whether the degree of 'connectedness' to public science is associated with greater firm-level research productivity in agriculture. Bibliographic information identifies the nature and degree to which firms use public agricultural science through citations and collaborations on scientific papers. Fixed effects models show that greater citations and collaborations with university researchers are associated with greater private agricultural research productivity. --
    Keywords: Public science,research productivity,patents,citations,collaboration,R&D,bibliometrics
    JEL: Q16 O31
    Date: 2011
  3. By: Toole, Andrew A.
    Abstract: While most economists believe that public scientific research fuels industry innovation and economic growth, systematic evidence supporting this relationship is surprisingly limited. In a recent study, Acemoglu and Linn (2004) identified market size as a significant driver of drug innovation in the pharmaceutical industry, but they did not find any evidence supporting science-driven innovation from publicly funded research. This paper uses new data on biomedical research investments by the U.S. National Institutes of Health (NIH) to examine the contribution of public research to pharmaceutical innovation. The empirical analysis finds that both market size and NIH funded basic research have economically and statistically significant effects on the entry of new drugs with the contribution of public basic research coming in the earliest stage of pharmaceutical drug discovery. The analysis also finds a positive return to public investment in basic biomedical research. --
    Keywords: R&D,NIH,social return,biomedical,research lags,public science,new molecular entities
    JEL: O31 O32 L65 H51
    Date: 2011
  4. By: Dubois, Pierre; de Mouzon, Olivier; Scott Morton, Fiona; Seabright, Paul
    Abstract: This paper quanti…es the relationship between market size and innovation in the pharmaceutical industry. We estimate the elasticity of innovation, as measured by the number of new chemical entities appearing on the market for a given disease class, to the potential market size represented by the willingness of su¤erers of diseases in that class (and others acting on their behalf such as insurers and governments) to spend on their treatment during the patent lifetime. We …nd positive signi…cant elasticities with a point estimate under our preferred speci…cation of 25.2%. This suggests that at the mean market size an additional $1.8 billion is required in additional patent life revenue to induce the invention of one additional new chemical entity. An elasticity substantially and signi…cantly below one-half is also a plausible implication of the hypothesis that innovation in pharmaceuticals is becoming more di¢ cult and expensive over time, as costs of regulatory approval rise and as the industry runs out of "low hanging fruit".
    Keywords: Innovation, Market Size, Elasticity, Pharmaceuticals
    JEL: O31 L65 O34
    Date: 2011–04
  5. By: Meyborg, Mirja
    Abstract: In recent years, it has widely been accepted that the ability to create, access and use knowledge and technology is becoming a fundamental determinant of long-term development and competitiveness. Thus, it is not surprising that universities have increasingly become involved in economic development and are often believed to play a key role in regional economic development. This paper firstly examines how far all West-German universities are already involved in close network collaborations. Second, it demonstrates how many distinct linkages 45 chosen West-German universities already possess within the innovation network, and third, to what extent they are already needed as a link in the chains of contacts. Thereby, special attention is given to the eight West-German elite-universities. We basically found out that university interactions, especially university-enterprise networks, become much more important over the last 20 years, as their cooperation activity strongly increased over time. Besides, their distinct linkages to other actors as well as their importance as an intermediary within the innovation network highly increased over the last decade, too; this especially holds for the eight West-German elite universities. --
    Keywords: Human Capital,Economic Growth,Social Network Analysis,Patent Analysis,Patent Collaboration,Network Interaction,West-German University,Elite-University
    Date: 2011
  6. By: Nicolas Jullien (MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - Institut Télécom - Télécom Bretagne - Université de Bretagne Occidentale - Brest - Université de Bretagne Sud - Université Rennes 2 - Université de Rennes I - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes - Université européenne de Bretagne); Jean-Benoît Zimmermann (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579)
    Abstract: The participation of firms in Free/Libre/Open Source Software (FLOSS) communities is growing and is increasingly debated amongst scholars. As [41] explained, FLOSS needs profit and we do not know successfull floss products without firms in their ecosystem, either being via the financial support of foundations (Eclipse, Linux) or the commercial offering of products or services based on specific FLOSS products (SQL, RedHat). Various points of view have been proposed, but most of the time, scholars studied either the implication of firms within a community or the integration of floss into their market strategy, but not both. In this article, we plead for a more structured and global analysis, based on industrial economics tools, and thus starting from the basic conditions of the computer market and of the buyers' competence in software development (the 'dominant user's skill). This conceptual framework helps to distinguish the different roles (understood as 'social roles') firms may play in the FLOSS ecosystem and, specifically the variation in their involvement.
    Keywords: 'Free'/'libre' or 'open source' software, Industrial economics, dominant user's skill, firms' roles
    Date: 2011

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