nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2012‒09‒16
five papers chosen by
Roland Kirstein
Otto von Guericke University Magdeburg

  1. Patent Citations and Triadic Closures as Private Value Indicators (Japanese) By WADA Tetsuo
  2. The Geography of Knowledge Relatedness and Technological Diversification in U.S. Cities By David Rigby
  3. Patents versus R&D subsidies in a Schumpeterian growth model with endogenous market structure By Chu, Angus C.; Furukawa, Yuichi
  4. Generic substitution policy, prices and market structure: evidence from a quasi-experiment in Finland By Aki Kangasharju; Joni Hokkanen; Ismo Linnosmaa; Hannu Valtonen
  5. The Intellectual Influence of Economic Journals: Quality versus Quantity By Kóczy László; Nichifor Alexandru

  1. By: WADA Tetsuo
    Abstract: The number of forward patent citations has been established as an indicator for the economic value of patents. There remain unresolved questions such as the difference between examiner citations and inventor citations as value indicators and whether and how local clustering coefficients of added citations affect the private value of cited patents. These questions are related with the problem of patent thickets since examiner citations reflect them more directly than inventor citations. Also, higher local clustering coefficients imply denser networks (more triadic closures) of patent citations around a patent, suggesting that local clustering coefficients can be a measurement of subsequent growth of patent thickets. In order to explore the relationship between the value of patents and the clustered nature of patented citations, this study employs survival analysis of patent renewals, based on Japanese patent and citation data. Results show that both examiner and inventor citers are correlated with the private value of cited patents, but there are differences. Triadic closure citers made by examiners are statistically significant factors for private value, whereas inventors' triadic closure citers are not. The findings above illuminate the advantage of examiner citations, which are sometimes thought to be "noise" as knowledge spillover proxies.
    Date: 2012–09
  2. By: David Rigby
    Abstract: U.S. patent data and patent citations are used to build a measure of knowledge relatedness between all pairs of 438 major patent classes in the USPTO. The knowledge relatedness measures, constructed as the probability that a patent in class j will cite a patent in class i, form the links of a patent network. Changes in this U.S. knowledge network are examined for the period 1975 to 2005. Combining the knowledge network with patent data for each of the CBSAs in the United States permits analysis of the evolution of the patent knowledge base within metropolitan areas. Measures of knowledge relatedness are employed to explain technological diversification and abandonment in U.S. cities.
    Keywords: knowledge relatedness, technological diversification, patents, citations
    Date: 2012–10
  3. By: Chu, Angus C.; Furukawa, Yuichi
    Abstract: In this note, we explore the different implications of patent breadth and R&D subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We find that these two policy instruments have the same positive effect on economic growth when the model exhibits counterfactual scale effects under an exogenous number of firms. However, when the model becomes scale-invariant under an endogenous number of …firms, R&D subsidies increase economic growth but decrease the number of firms, whereas patent breadth expands the number of firms but reduces economic growth. Therefore, R&D subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating economic growth.
    Keywords: economic growth; endogenous market structure; patents; R&D subsidies
    JEL: O30 O40
    Date: 2012–08
  4. By: Aki Kangasharju; Joni Hokkanen; Ismo Linnosmaa; Hannu Valtonen
    Abstract: The present paper evaluates the quantitative impact of a pharmaceutical reform on pharmaceutical prices. A generic substitution policy was introduced in Finland in 2003 to contain rising pharmaceutical expenditure. After the reform pharmacists were obliged to propose a cheaper alternative to a prescribed pharmaceutical product whenever a substitutable product was available. There were three possible channels through which the price effect might have been transmitted.<br><br>First, the policy might have affected manufacturers? pricing behaviour for existing pharmaceutical products. Second, firms might have introduced new product variants of existing drugs to the market in the form of new generics or different package sizes. Third, the policy might have affected prices through the market structure, with more firms offering new product variants entering the market.
    Keywords: pharmaceuticals, generic substitution, difference-in-differences, pretreatment trends, therapeutic competition
    JEL: C23 L11 L65
    Date: 2012–08–24
  5. By: Kóczy László; Nichifor Alexandru (METEOR)
    Abstract: The evaluation of scientific output has a key role in the allocation of research funds andacademic positions. Decisions are often based on quality indicators for academic journals and overthe years a handful of scoring methods have been proposed for this purpose. Discussing the mostprominent methods (de facto standards) we show that they do not distinguish quality from quantityat article level. The systematic bias we find is analytically tractable and implies that themethods are manipulable. We introduce modified methods that correct for this bias, and use themto provide rankings of economic journals. Our methodology is transparent; our results are replicable.
    Keywords: mathematical economics;
    Date: 2012

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