nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2012‒06‒05
six papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Adverse Effects of Patent Pooling on Product Development and Commercialization By Thomas D. Jeitschko; Nanyun Zhang
  2. Open Innovation and Firm's Survival: An empirical investigation by using a linked dataset of patent and enterprise census By MOTOHASHI Kazuyuki
  3. What are the channels for technology sourcing? Panel data evidence from German companies By Harhoff, Dietmar; Mueller, Elisabeth; Van Reenen, John
  4. Innovation and research by private agribusiness in India: By Pray, Carl E.; Nagarajan, Latha
  5. Les déterminants de l’innovation dans les services : une analyse à partir des formes d’innovation développées By Michelle Mongo; Corinne Autant-Bernard
  6. Transaction costs and pharmaceutical clinical research: a Data Envelopment Analysis approach By Greta Falavigna; Roberto Ippoliti

  1. By: Thomas D. Jeitschko (Economic Analysis Group, Antitrust Division, U.S. Department of Justice); Nanyun Zhang (Economic Analysis Group, Antitrust Division, U.S. Department of Justice)
    Abstract: The conventional antitrust wisdom is that the formation of patent pools is welfare en- hancing when patents are complementary, since the pool avoids a double-marginalization problem associated with independent licensing. The focus of this paper is on (down- stream) product development and commercialization on the basis of perfectly comple- mentary patents. We consider development technologies that entail spillovers between rivals, and assume that nal demand products are imperfect substitutes. When pool formation facilitates information sharing and either increases spillovers in development or decreases the degree of product di erentiation, patent pools can adversely a ect welfare by reducing the incentives towards product development and product mar- ket competition|even with perfectly complementary patents. This modi es and even negates the conventional wisdom for some settings and suggests why patent pools are uncommon in science-based industries such as biotech and pharmaceuticals, despite there being frequent policy advocacy for them.
    Keywords: Patent Pools, Research and Development, Innovation, BioTechnology, Electronics
    JEL: L1 L2 L4 L6 D2 D4
    Date: 2012–04
  2. By: MOTOHASHI Kazuyuki
    Abstract: This paper uses patent filings as an indicator of innovation and investigates the relationship between innovation and firms' survival, based on the linked dataset of the Census of Establishment and Enterprise and the Institute of Intellectual Property (IIP) Patent Database for Japanese firms. We have constructed the indicators on the organization of innovative activities, such as external collaboration in inventions and the type of collaborative partners, and disentangle two competing factors, i.e., technological capability (positive influence on firms' survival) and commercial risk (negative influence on firms' survival). We found that the risk factor surpasses the capability factor, thus the impact of patenting on survival has a negative correlation with firms' survival at the end.
    Date: 2012–05
  3. By: Harhoff, Dietmar; Mueller, Elisabeth; Van Reenen, John
    Abstract: Innovation processes within corporations increasingly tap into international technology sources, yet little is known about the relative contribution of different types of innovation channels. We investigate the effectiveness of different types of international technology sourcing activities using survey information on German companies complemented with information from the European Patent Office. German firms with inventors based in the US disproportionately benefit from R&D knowledge located in the US. The positive influence on total factor productivity is larger if the research of the inventors results in co-applications of patents with US companies. Moreover, research cooperation with American suppliers also enables German firms to better tap into US R&D, but cooperation with customers and competitors does not appear to aid technology sourcing. The results suggest that the brain drain to the US can have upsides for corporations tapping into American know-how. --
    Keywords: technology sourcing,knowledge spillovers,productivity,open innovation
    JEL: O32 O33
    Date: 2012
  4. By: Pray, Carl E.; Nagarajan, Latha
    Abstract: Agricultural research and innovation has been a major source of agricultural growth in developing countries. Unlike most research on agricultural research and innovation which concentrated on the role of government research institutes and the international agricultural research centers of the Consultative Group for International Agricultural Research, this paper focuses on private sector research and innovation. It measures private research and innovation in India where agribusiness is making major investments in research and producing innovations that are extremely important to farmers. It also reviews Indian policies that influence research and innovation. This new data and policy analysis can provide India policy makers with a basis for policies that can strengthen the direction and impact of agricultural research and innovation in the future. Agricultural innovations in India have rapidly increased since the 1980s. Government data and surveys of seed firms show that from about 1990 to 2010 the number of new seed cultivars available to farmers in maize, wheat, and rice roughly doubled, while the number of cotton cultivars at least tripled. Biotechnology innovations went from zero in the 1990s to 5 genetically modified (GM) traits in hundreds of GM cotton cultivars by 2008. Pesticide registrations went from 104 in the period 1980–1989 to 228 during the period 2000–2010. Similar growth in innovations also occurred in the agricultural machinery, veterinary medicine, and agricultural processing industries. These innovations have come from foreign technology transferred into India as well as from in-country public and—increasingly—private research. Based on interviews with firms and data from annual reports, we find that private investment in agricultural research grew from US$54 million in 1994/95 to US$250 million in 2008/09 (in 2005 dollars). Growth in private research and development (R&D) expenditure was particularly rapid in the seed and plant biotechnology industry, which grew by more than 10 times between the mid-1990s and 2009. Private innovations have contributed to agricultural productivity and incomes. Research and innovation by private industry led to the boom in cotton exports and to rapid increases in exports of generic pesticides and agricultural machinery. Private hybrids of cotton, rice, maize, pearl millet, and sorghum increased yields over public hybrids, varieties, and landraces. Small farmers in some of the poorest regions of India—the semiarid tropics of central India and the rainfed rice regions of eastern India—get higher productivity with private hybrids. The increases in innovation and R&D were led by expanding demand for agricultural products, which increased demand for land-, labor-, and water-saving inputs. A second major factor was the economic liberalization that allowed large Indian corporations, business houses, and foreign firms to invest in agriculture and agribusiness. Firms' decisions to conduct research in India were also encouraged by strong public-sector research, which provided firms with increased opportunities to develop new products with scientists, such as hybrid cultivars. Finally, research was stimulated by the availability of new tools of science, such as biotechnology, and by the recent strengthening of intellectual property rights.
    Keywords: Agricultural R&, D, Agricultural research, Agricultural development, Private sector, private sector research, Technology transfer, Innovation, Innovation Policy,
    Date: 2012
  5. By: Michelle Mongo (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,Université Jean Monnet, Saint-Etienne, F-42000, France); Corinne Autant-Bernard
    Abstract: This article makes a study of the influence of innovation determinants on their ability to innovate and the different types of innovation (technological and non-technological) developed within service sector. The statistics are provided from the community Innovation Survey. The estimation method is a probit with selection from the framework proposed by Heckman (1979) and refined by Van De Ven and Van Praag (1981). The first equation explains the innovative capacity and the second explicates the implementation of different types of innovation (technological and / or non-technological). The analysis focuses on the comparison of innovation behaviors in service sector and industry. The results demonstrate that the determinants of innovation ability are similar for service sector and industry and the differences are issued from different forms of innovation developed. More precisely, it comes from the orientation of each sector towards more or less technological innovation. The results bring up the question of the appropriateness of current policies of innovation especially in R&D’ promotion. The author proposes to take into account the consideration of different types of activities and innovation for this policy and suggests to focus on the lowtechnological but innovative and non-technological activities like intellectual services.
    Keywords: Non-technological Innovation, Services, Community Innovation Survey
    JEL: O31
    Date: 2014
  6. By: Greta Falavigna (Ceris - Institute for Economic Research on Firms and Growth,Turin,Italy); Roberto Ippoliti (IEL International Program in Institutions, Economics and Law)
    Abstract: Taking human experimentation into account, this work aims at estimating the relationship between transaction costs, which are related to the protection system of patients’ rights, and localization of pharmaceutical industry’s testing phase. Assuming that the competitiveness of the protection system is based on the time required to obtain an authorization or an experimental activity, pharmaceutical clinical research should be positively affected by a process aimed at internalizing the review process, if efficient. By analyzing said system with operational research, this paper concludes suggesting the potentiality of a competitive system of reviewers, that is to say, the efficiency of that internalization process is performed by medical centers in which the experimental treatments are proposed to subjects.
    JEL: I18 L51
    Date: 2012–06

This nep-ipr issue is ©2012 by Roland Kirstein. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.