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on Intellectual Property Rights |
| By: | Bernhard Ganglmair; Emanuele Tarantino |
| Abstract: | In a model of industry standard setting with private information about firms' intellectual property, we analyze (a) firms' incentives to contribute to the development and improvement of a standard, and (b) firms' decision to disclose the existence of relevant intellectual property to other participants of the standard-setting process. If participants can disclose after the end of the process and fully exploit their bargaining leverage, then patent holders aspire to disclose always after the end of the process. However, if a patent holder cannot rely on the other participants to always contribute to the process, then it may be inclined to disclose before the end of the process. We also analyze under which conditions firms enter cross-licensing agreements that eliminate the strategic aspect of patent disclosure, and show that, in an institutional setting that implies a waiver of intellectual property rights if patents are not disclosed timely, firms aspire to disclose before the end of the process. Finally, we study the effect of product-market competition on patent disclosure. |
| JEL: | D71 D83 L15 O34 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17999&r=ipr |
| By: | Hagedoorn, John (UNU-MERIT/MGSoG, and Department of Organization & Strategy, School of Business and Economics, Maastricht University); Ridder, Ann-Kristin (Department of Organization & Strategy, School of Business and Economics, Maastricht University) |
| Abstract: | Our exploratory empirical study, based on a series of in-depth interviews and a survey of firms, searches for answers on a number of questions that deal with the role of formal contracts and intellectual property rights in the context of open innovation. We find that firms active in open innovation have a strong preference for the governance of their open innovation relationships through formal contracts. These contracts are relevant from both a control and a process monitoring perspective. Also, despite the open nature of open innovation, firms still see intellectual property rights as highly relevant to the protection of their innovative capabilities. In a first attempt to explain this preference for intellectual property rights by open innovation firms, we find the degree of openness of firms, their legalistic attitude, and the competitive dynamics of their product market environment to be related to this preference. |
| Keywords: | open innovation, contracts, intellectual property rights |
| JEL: | K11 K12 L24 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2012025&r=ipr |
| By: | Alireza Naghavi (Department of Economics, University of Bologna and Fondazione Eni Enrico Mattei); Yingyi Tsai (Department of Applied Economics, National University of Kaohsiung) |
| Abstract: | This paper studies cross-border intellectual property rights (IPR) as a North-South contract using a Nash bargaining approach and distinguishes between the outcome and its actual enforcement. The absorptive capacity of the Southern country to exploit technology transfer plays a key role in the negotiated level of IPRs and its post-treaty enforcement. The optimal level of IPR protection relates positively to absorptive capacity. This provides a rationale for the longer time-frame provided to least developed countries in Article 66 of TRIPS to implement its provisions. In addition, monitoring is only effective in preventing contract violation up to a critical level of absorptive capacity. We relate this to the US Trade Representative “Special 301” report, which flags countries that deny adequate IPR protection as “priority watch list”. While disputes with less developed economies are promptly resolved, emerging economies, where most losses from copyright piracy originates from, continue to remain on the list. |
| Keywords: | Intellectual Property Rights, TRIPS, Nash Bargaining, Contract Enforcement, Development, Absorptive Capacity, Monitoring |
| JEL: | O34 F13 F53 D78 L10 O33 C70 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.21&r=ipr |
| By: | Ghafele, Roya; Gibert, Benjamin |
| Abstract: | This paper evaluates the value proposition of public-private partnerships to patent review by analyzing the potential impact of crowdsourced prior art search on the European patent system. This first requires outlining the current challenges patent offices in Europe face due to their tremendous workload. The worst consequence of this for the innovation system – a drop in granted patent quality - is then described. Low standards in patent quality are believed to be the result of enormous strain on, and unreasonable expectations of, patent offices. Crowdsourcing offers a solution to many of these problems and presents a valuable resource for patent offices if the process is managed efficiently. The United States Patent and Trademark Office (USPTO) and Japanese Patent Office’s (JPO) pilot projects in community patent review are presented as opportunities from which Europe can learn. Promoting public-private partnerships in the management of crowdsourced prior art search can be a valuable solution to mitigate current challenges. |
| Keywords: | crowdsourcing; patent quality; patent offices; innovation |
| JEL: | O38 O34 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38092&r=ipr |
| By: | Chu, Angus C.; Leung, Charles Ka Yui; TANG, C. H. Edward |
| Abstract: | In this note, we analyze the effects of intellectual property rights on the volatility of economic growth. Our analysis is motivated by the observation that the strengthening of patent protection and the increase in R&D in the US coincide with a reduction in growth volatility beginning in the mid 1980’s. To analyze this phenomenon, we develop an R&D-based growth model with aggregate uncertainty in the innovation process and apply the model to ask whether increasing patent strength and R&D can lead to a significant reduction in growth volatility. We find a small but non-negligible effect that explains no less than 10% of the observed reduction in growth volatility in the US. |
| Keywords: | Economic growth; Intellectual property rights; Growth volatility |
| JEL: | E32 O34 O33 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38132&r=ipr |
| By: | Pierre Regibeau; Katharine Rockett; Samrawit Mariam |
| Abstract: | We replicate and extend the results of Regibeau and Rockett (2010) on a new data set. We confirm that importance of a patent and the delay in approval at the patent office are negatively related. This relation survives even if we do not control for learning effects and so suggests that carefully defining the technology is sufficient to recover the negative relation. We use new measures to test for the existence of patent “thickets”, thereby ruling out some strategic considerations in delay behaviour. It appears that delay is attributable to patent office, not filer, behaviour in our sample. A more careful analysis of the possible effect of examiner workload finds that larger workloads per examiner are associated with shorter approval time, lending credence to Lemley and Shapiro’s concern that heavy workloads force examiners to devote too little time to each patent review. |
| Date: | 2012–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:esx:essedp:709&r=ipr |
| By: | Pierre-André Mangolte (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris XIII - Paris Nord - CNRS : UMR7234) |
| Abstract: | Dans cette dernière partie sont analysés les différents pools de patents constitués dans les industries du cinéma, de l'automobile et de l'aviation, suite aux guerres des patents étudiées précédemment. L'analyse se concentre alors sur les Etats-Unis. Si les pools ou accords de licences croisées mis sur pied à l'époque relèvent bien d'une même nécessité, celle d'arrêter les litiges juridiques et d'assurer une certaine "paix des patents", leur nature et leurs buts sont bien différents. La Motion Pictures Patents Co prolonge et étend le principe du contrôle exclusif des activités de la loi des patents et constitue par ailleurs un cartel qui sera condamné au titre de la loi Sherman; ce procès étant une des premières confrontations entre la vieille loi des patents et la toute nouvelle législation antitrust. Les différentes expériences dans l'industrie automobile, comme la Manufacturers Aircraft Association de la construction des avions laissaient à l'inverse toutes les entreprises en concurrence, en mettant par contre en commun un certain nombre de techniques. Il y avait là, à l'échelle de toute une industrie, une abolition partielle et volontaire de l'institution des patents. |
| Keywords: | pool de brevet, Sherman Act, antitrust, abolition des patents, Motion Picture Patents Co, Manufacturers Aircraft Association |
| Date: | 2012–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-00682591&r=ipr |
| By: | Pierre-André Mangolte (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris XIII - Paris Nord - CNRS : UMR7234) |
| Abstract: | Dans cette deuxième partie de l'étude "Patent Wars", et dans une approche toujours comparative, sont analysées les conséquences pour l'activité industrielle et le changement technique des différentes guerres des patents. Dans les trois industries émergentes du cinéma, de l'automobile et de l'aviation, cohabitent alors deux types de modèles économiques, les modèles proprement industriels, accompagnés ou non par des titres, et les modèles plus spécifiquement construits sur la détention et l'exploitation de patents. Ces deux types de modèles économiques sont clairement contradictoires. L'importance accordée aux patents et aux droits des inventeurs et propriétaires de patents aux Etats-Unis explique en effet très largement les évolutions et performances globales, c'est-à-dire la suprématie mondiale du cinéma français sur le cinéma américain jusqu'en 1914, un phénomène étonnant à bien des égards, mais aussi le retard, en dépit de l'invention majeure et de l'avance des frères Wright, et même si d'autres éléments interviennent ici, de l'industrie américaine de la construction des avions; l'automobile représentant alors une sorte de contre-exemple, explicable par le déroulement particulier de l'affaire du brevet Selden. L'étude, détaillée et comparative, montre précisément dans chacune des industries, en quoi et dans quelle mesure les différents "patents wars" ont freiné le développement des activités industrielles et même l'innovation. |
| Keywords: | guerre des brevets; industrie émergente; innovation; Edison; frères Wright; Selden; Henry Ford |
| Date: | 2012–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-00682563&r=ipr |
| By: | Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia Antipolis (UNS)) |
| Abstract: | The paper analyzes the effects of the properties of firms' knowledge base on the survival likelihood of firms. Drawing upon the analysis of the patterns of co-occurrence of technological classes in patent applications, we derive the coherence, variety and cognitive distance indexes, accounting respectively for technological complementarity, differentiation and (dis)similarity in the firms' patent portfolios. The results of our analysis are in line with the previous literature, showing that innovation enhances the survival likelihood of firms. In addition, we show that the search strategies at work in the development of firms' knowledge base matter in reducing the likelihood of a failure event. Knowledge coherence and variety appear to be positively related to firms' survival, while cognitive distance exerts a negative effect. We conclude that firms able to exploit the accumulated technological competences have more chances to be successful in competing durably in the market arena, and derive some policy implications concerning the role of public intervention in the orientation of search efforts in local contexts. |
| Keywords: | Knowledge coherence; variety; cognitive distance; firms' survival |
| Date: | 2012–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00686007&r=ipr |
| By: | Berndt, Ernst; Dubois, Pierre |
| Abstract: | Cross-country variability in regulatory frameworks, industrial policy, physician/pharmacy autonomy, brand/generic distinctions, and in the practice of medicine contributes to ambiguous interpretations of pharmaceutical cost comparisons. Here we report cross-country comparisons that: (i) focus on 11 therapeutic classes experiencing patent expiration and loss of exclusivity 2004-2010 in eight industrialized countries; (ii) convert revenues and unit sales to cost per day of treatment and number patient days treated using the World Health Organizations’ Defined Daily Dosage metrics; (iii) compare patterns in costs per day of treatment with price index measures based on average price per day of treatment for each molecule computed over all molecule versions; (iv) utilizing econometric methods, model and quantify various factors affecting variations in daily treatment price indexes such as national regulatory and reimbursement policy changes, physician/pharmacy autonomy, and other factors; and (v) simulate changes in expenditures by country and therapeutic class had counterfactual policies been implemented. |
| Keywords: | cross-country comparisons, pharmaceutical costs, generic drugs |
| JEL: | D4 I11 I18 L11 L65 O34 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:25732&r=ipr |
| By: | Ghafele, Roya; Gibert, Benjamin |
| Abstract: | This study identifies the mechanisms inherent to Open Source Software (OSS) production that help fuel innovation in knowledge-based economies. We furthermore assess the impact of Open Source Software on job and skill creation in the United States. We forecast that overall employment in software development occupations is to grow substantially. According to our estimates computer specialist occupations are expected to increase by over 22%, adding 762,000 jobs in the US from 2008 to 2018. This occupational group is one of the fastest growing – twice the average growth rate for all jobs - and software development occupations enjoy an average salary across all industries that is more than twice the national average for all occupations. We estimate that the number of OSS-related software development jobs in the US is estimated to be between 801,590 and 1,201,391 jobs in 2008. This will grow to between 910,007 and 1,477,794 by 2018 according to estimates based on employment projections by the US Bureau of Labour Statistics. The economic value proposition of OSS will reverberate well beyond the software industry. The broad diffusion of software development jobs throughout the US economy suggests that most sectors are in a strong position to adopt OSS. Information technology (IT) user sectors employ the majority of computer specialists in most software development occupations: 68% of computer systems analysts, 58% of computer programmers, 61% of computer and information scientists, and 48% of computer software engineers. This suggests that OSS adoption can be usefully implemented to cut costs and boost innovation efficiency in a variety of industries. As US industries are exposed to the benefits of OSS, open innovation processes outside software development may be adopted through a process of learning and imitation. This is likely to stimulate even greater innovation efficiency gains in all sectors of the US economy. |
| Keywords: | Job creation; open source software; open innovation; |
| JEL: | O38 O32 O31 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38088&r=ipr |