nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒10‒10
four papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The Intellectual Property Right and Firm Survival in Different Growth Stages By S0-Jin Lim
  2. A model of patent trolls By CHOI, Jay Pil; GERLACH, Heiko
  3. Measurement of the Relationship Between Service Quality and Brand Loyalty with Structural Equation Modeling: A Research on Users of Smartphone Brands By Mehmet Nejat ÖZÜPEK; Murat KOÇY; Murat ERDO
  4. Testing the National Innovative Capacity of Selected Countries. By Esra BALLI; Muammer TEKEO; Müge MANGA

  1. By: S0-Jin Lim (Korea Institute of Intellectual Property)
    Abstract: As the ratio of intangible assets in firm’s market value is increasing, the business strategy on knowledge assets including intellectual property rights is becoming the key factor determining firm’s performance and survival. This study empirically examines the impacts of IPR on the firm survival using 619,314 firm-year observations of South Korean manufacturing firms in 2000-2012, based on the assumption that those effects depend on the types, quantity, attributes of IPR and the growth stage and industries of a firm. We find that one unit increase of patent stock, design and trademark in firms could reduce the hazard ratio by 0.9%, 10.3% and 13.6% respectively. As to the attributes of patents, one unit increase of the numbers of claims, IPC classification and the ratio of joint applied patent could reduce the hazard ratio by 0.4%, 2.1%, and 5.3% respectively. And, in regard to the discriminative effects of those variables according to the growth stage of a business, the positive effect of the quantity of patent stock is decreasing and that of patent’s quality is increasing as a firm grows.
    Keywords: Intellectual Property Right, Firm Survival, Cox proportional hazard model, growth stage
  2. By: CHOI, Jay Pil; GERLACH, Heiko
    Abstract: This paper develops a model of patent trolls to understand various litigation strategies employed by nonpracticing entities (NPE). We show that when a NPE faces multiple potential infringers who use related technologies, it can gain a credible threat to litigate even when it has no such credibility vis-à-vis any single potential infringer in isolation. This is due to an information externality generated by an early litigation outcome for subsequent litigation. Successful litigation creates an option value against future potential infringers through Bayesian updating. This renders a credible litigation threat against the initial defendant and allows the NPE to extract more rents. We discuss policy implications including the adoption of the British system of “loser-pays” fee shifting and the use of injunctive relief.
    Keywords: patent portfolios, patent litigation, non-practicing entities, patent troll
    JEL: D43 L13 O3
    Date: 2015–09
  3. By: Mehmet Nejat ÖZÜPEK (Selcuk University Faculty of Communication); Murat KOÇY (Necmettin Erbakan University Faculty of Tourism); Murat ERDO (Necmettin Erbakan University Faculty of Tourism)
    Abstract: In today's rapidly changing and differentiating competitive environment, brands operating in smart phone industry must change, renew and improve service quality constantly to be able to respond immediately to changing customer expectations each passing day. Nowadays, criteria such as the quality of the manufactured product or service, customer satisfaction, trust in brand, brand loyalty and contribution to society have replaced the conventional performance indicators showing market share and profit levels of brands. Accordingly, the aim of this study is to investigate the impact of service quality to brand loyalty. In this context, a conceptual model was created in order to determine the impact of quality of service on brand loyalty through Structural Equation Model (SEM). The relationship between the variables in the model was tested by using data of the surveys applied to 353 Smartphone users and hypotheses put forward theoretically were examined. In addition, frequency analysis, and Confirmatory Factor Analysis (CFA) and Structural Equation Models applications were used in the analysis of research. In the model put forward theoretically, quality of service affects brand loyalty in a general integrity. Also, the hypotheses that service quality has a direct impact on perceived quality and customer satisfaction, perceived quality and customer satisfaction has a direct impact on trust and also trust has a direct impact on the brand loyalty are supported.
    Keywords: Service Quality, Brand Loyalty, Customer Satisfaction, Perceived Quality, Trust
    JEL: M30 M31 M37
  4. By: Esra BALLI (Çukurova University); Muammer TEKEO (Çukurova University); Müge MANGA (Çukurova University)
    Abstract: It is widely accepted that innovation is the driving force for economic growth. Therefore it is important for countries to examine their national innovative capacity to build and strength their related institutions and infrastructures. This study examines the national innovative capacity of selected 19 countries utilizing panel data for the period 1995 to 2013. The results show that patents are affected differently according to the countries’ Gross Domestic Product, total personnel in Research and Development, educational share spent on Gross Domestic Product, percentage of Research and Development funded by private industry and percentage of Research and Development funded by government. In addition patents are inclined to increase nations development level.
    Keywords: National innovative capacity, Panel data, Patents
    JEL: C23 F43 O30

This nep-ipr issue is ©2015 by Giovanni Ramello. 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.
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