nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2015‒11‒21
seven papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Dynamic Effects of Patent Pools: Evidence from inter-generational competition in optical disk industry By SHIMBO Tomoyuki; NAGAOKA Sadao; TSUKADA Naotoshi
  2. Can Intellectual Property Rights Protection Generate Brain Gain from International Migration? By Alireza Naghavi; Chiara Strozzi
  3. The Employment Impact of Innovation: Evidence from European Patenting Companies By Vincent Van Roy; Daniel Vertesy; Marco Vivarelli
  4. Shedding Light on Inventors' Returns to Patents By Domenico Depalo; Sabrina Di Addario
  5. Intellectual Property Rights and Diaspora Knowledge Networks By Alireza Naghavi; Chiara Strozzi
  6. The power of individual-level drivers of inventive performance By Zwick, Thomas; Frosch, Katharina; Hoisl, Karin; Harhoff, Dietmar
  7. Incentives for Process Innovations under Discrete Structural Alternatives of Competition Policy By Šastitko, Andrej E.; kurdin, a. a.

  1. By: SHIMBO Tomoyuki; NAGAOKA Sadao; TSUKADA Naotoshi
    Abstract: This paper examines empirically how patent pools affect the research and development (R&D) for a next-generation standard and for improving and exploiting the current standard, based on panel data from the optical disk industry. Our analysis explicitly recognizes the inter-generational competition among standards and the timing difference between the standard agreement and the pool formation for the standard. The major findings are as follows. Both the agreement for the current standard (DVD) and the formation of the pools were followed by more R&D by the pool licensors for a next-generation standard (BD and HDDVD), relative to the nonparticipants of the pools. Furthermore, the formation of the pools was followed by intensified R&D efforts by the pool licensors for improving and exploiting the current standard. Thus, there is no evidence for negative effects of the pools on the innovations by the pool licensors. The R&D of the pool licensees for the next-generation standard also increased with some lag after the pool, suggesting the positive effect of open pool licensing for their learning and innovations toward the next-generation technology. Lower response of the 6C licensors, relative to that of the 3C licensors, may reflect the former's larger sunk cost in the DVD technology. After the formation of the pools, the patenting propensity by the licensors increased with deteriorating patent quality, and such tendency is larger for the 6C patent pool, presumably reflecting their royalty distribution policy based on simple patent counts.
    Date: 2015–11
  2. By: Alireza Naghavi (University of Bologna); Chiara Strozzi (University of Modena and Reggio Emilia, IZA)
    Abstract: This paper studies the interaction between international migration and intellectual property rights (IPR) in determining innovation performance of developing countries. Although emigration may di-rectly cause brain drain, it generates a flow of knowledge acquired by emigrants abroad back to their home countries, which could be better absorbed under sound IPR institutions. IPRs thus work as a moderating factor to overcome brain drain by creating the conditions to better absorb potential gains from migration. Using a panel dataset of emerging and developing countries, we establish a positive correlation between emigration and innovation when IPRs are sufficiently strong.
    Keywords: Intellectual property rights, International migration, Innovation, Knowledge flows, Brain gain, Diaspora.
    JEL: O30 F22 J24
  3. By: Vincent Van Roy (European Commission, Joint Research Centre, Ispra, Varese, Italy); Daniel Vertesy (European Commission, Joint Research Centre, Ispra, Varese, Italy); Marco Vivarelli (DISCE, Università Cattolica - SPRU, University of Sussex - Institute for the Study of Labour (IZA), Bonn)
    Abstract: This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003-2012. The main outcome from the proposed GMM-SYS estimations is the labour-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services.
    Keywords: Technological change, innovation, patents, employment, GMM-SYS
    JEL: O31 O33
    Date: 2015–10
  4. By: Domenico Depalo (Bank of Italy); Sabrina Di Addario (Bank of Italy)
    Abstract: We estimate individual returns to patents using a unique longitudinal administrative dataset on patents and earnings, following individuals and firms for 20 years (1987-2006). We find that inventors' wages steadily increase before patent applications are submitted to the European Patent Office, reach a peak around the time of submission and then decrease again. We also find that the applications that will eventually lead to a granted patent receive a greater wage increase than those that will not. Finally, we use an event study framework to distinguish among inventor-types and we find that the star-inventors" (the employees submitting at least three times in their life) receive a lasting wage premium, while the employees with one or two submissions stop receiving the premium after the application date, in line with the "unobserved ability" literature.
    Keywords: Patents; Wages; Incentives; Inventors; Performance pay; Return
    JEL: O31 J31
  5. By: Alireza Naghavi (University of Bologna and Centro Studi Luca d'Agliano); Chiara Strozzi (University of Modena and Reggio Emilia)
    Abstract: This paper studies mechanism through which intellectual property rights (IPR) protection can influ-ence the impact of skilled migration on innovation activities in developing countries. We argue that knowledge acquired by emigrants abroad can flow back to their country of origin through diaspora networks. IPR protection in the sending country magnifies this effect by increasing the size of the innovation sector, thereby allowing diaspora gains to fall on a larger range of workers. Strong IPR enforcement therefore makes it more likely for brain drain to be transformed into brain gain.
    JEL: O30 F22 J24
  6. By: Zwick, Thomas; Frosch, Katharina; Hoisl, Karin; Harhoff, Dietmar
    Abstract: Based on an established theoretical framework of the drivers of inventive performance, the so-called KSAO (Knowledge, Skills, Abilities, and Other) factors, this paper seeks to explain empirically the performance of inventors throughout their careers. We combine survey information spanning the inventors' entire careers and psychometric test evidence, with patent history data for more than 1,000 inventors. We also control for variables that have traditionally been included in estimations of inventive performance such as inventor age and a broad list of applicant institution-, technology-, patent-, and period-related information. We show that educational level, skills acquired during the career, personality traits, career motivations, cognitive abilities, and cognitive problem-solving style are significantly related to inventive performance.
    Keywords: inventive performance,individual drivers,patent history,survey
    JEL: J24 M54 O31 O32
    Date: 2015
  7. By: Šastitko, Andrej E.; kurdin, a. a.
    Abstract: This study analyses the incentives for process innovations under different conditions determined by the competition policy for intellectual property rights (IPR) and particular features of markets and technologies. Competition policy is defined by the presence or absence of compulsory licensing, markets are characterized by technological leadership or technological competition. The results of modelling show that the uncertainty engendered by technological competition may lower the intensity of innovative activities, if there are no mechanisms of coordination between participants. Voluntary licensing generally improves social welfare but does not guarantee an increase in innovative efforts. Compulsory licensing can impede innovations due to the opportunistic behaviour of market participants but certain measures of state policy can prevent this negative effect.
    Keywords: competition policy,compulsory licensing,process innovations
    JEL: L24 O31 K21
    Date: 2015–04–14

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