nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2017‒01‒15
five papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. China’s Rising IQ (Innovation Quotient) and Growth; Firm-level Evidence By Hui He; Nan Li; Jing Fang
  2. Optimal Incentives for Patent Challenges in the Pharmaceutical Industry By Enrico Böhme; Jonas Severin Frank; Wolfgang Kerber
  3. Brand-Level Demand Analysis of Mayonnaise in Northeast Texas By Bakhtavoryan, Rafael
  5. Technological Diversification of ICT companies into the Internet of things (IoT): A Patent -based Analysis By Sadowski, Bert; Nomaler, Onder; Whalley, Jason

  1. By: Hui He; Nan Li; Jing Fang
    Abstract: This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcome by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007. We find strong evidence that within-firm increases in patent stock are associated with increases in firm size, exports, and more interestingly, total factor productivity and new product revenue share. Event studies using first-time patentees as the treatment group and non-patenting firms selected based on Propensity-Score Matching method as the control group also demonstrate similar effects following initial patent application. We also find that although state-owned enterprises (SOEs) on average have lower level of productivity and are less innovative compared to their non-state-owned peers, increases in patent stock tend to be associated with higher productivity growth among SOEs, especially for patents with lower innovative content. The latter could reflect the preferential government policies enjoyed by SOEs.
    Keywords: Technological innovation;China;Business enterprises;Public corporations;Innovation, Growth, Patent, R&D, Productivity, SOE Reforms, China
    Date: 2016–12–22
  2. By: Enrico Böhme (University of Marburg); Jonas Severin Frank (University of Marburg); Wolfgang Kerber (University of Marburg)
    Abstract: Since the patent system relies on private litigation for challenging weak patents, and patent settlements might influence the incentives for challenging patents, the question arises whether the antitrust assessment of patent settlements should also consider their impact on the incentives to challenge potentially invalid patents. Patent settlements in the pharmaceutical industry between originator and generic firms have been scrutinized critically by competition authorities for delaying the market entry of generics and therefore harming consumers. In this paper we present a model that analyzes the tradeoff between limiting the delay of generic entry through patent settlements and giving generic firms more incentives for challenging weak patents of the originator firms. We show that allowing patent settlements with a later market entry of generics than the expected market entry under patent litigation can increase consumer welfare under certain conditions. We introduce a policy parameter for determining the optimal additional period for collusion that would maximize consumer welfare and show that the size of this policy parameter depends on the size of the challenging costs, the intensity of competition, and the duration between the generics’ market entry decisions.
    Keywords: patent settlements, collusion, patent challenges
    JEL: L10 L40 O34
    Date: 2017
  3. By: Bakhtavoryan, Rafael
    Abstract: Mayonnaise is the most consumed condiment in the U.S. with domestic consumers spending some $2 billion on its consumption and with a couple of brands controlling a significant portion of the market. However, the demand for mayonnaise at the brand level has not been studied extensively in previous research. In this study, the Barten synthetic model was estimated to investigate the demand for mayonnaise and competition among major mayonnaise brands (private label, Hellmann’s, Kraft, and other brands) in Northeast Texas. Compensated cross-price elasticities revealed that Kraft was the major competitor to private label and other brands, while private label was the major competitor to Kraft.
    Keywords: brand competition, mayonnaise, the Barten synthetic model, Consumer/Household Economics, Demand and Price Analysis, D12,
    Date: 2017
  4. By: MuhiddinPulatov
    Abstract: The given paper highlights the impact of future financial figures rather that past ones of the intellectual property and business transactions on current business performance. The author suggests adding the block of financial reporting showing financial result of business achieved during past years should be complement by a special statement showing total financial result of business achieved during firm’s previous entire operational period. Key words: intellectual property, business transactions, financial reporting Policy
    Date: 2016–12
  5. By: Sadowski, Bert; Nomaler, Onder; Whalley, Jason
    Abstract: The Internet-of-things (IoT) has been heralded as the third industrial revolution combining disruptive technological change and a radical restructuring of the traditional ICT ecosystem. Technological diversification allows companies in the information and communication technology (ICT) industries to participate in the IoT by transplanting their existing know-how to new application domains. In using the ICT ecosystem perspective, this paper examines the diversification of 1323 ICT companies into IoT by investigating 86,159 main patents in the IoT area using the USPTO database. The paper examines the extent to which the existing knowledge base allows ICT firms to diversify into the new technological area, that is, IOT. It utilizes an entropy measure to characterize the extent to which ICT firms diversify into IoT. We propose that a firm's knowledge position in a new emerging technological has an important strategic value in terms of competitiveness. It characterizes a few new application domains in neighboring industries like health or transport. The paper concludes that due to technological pervasiveness Iot provides for new innovative activities and technological opportunities for ICT companies to grow in emerging sectors like wearables, industrial automation, smart energy and smart mobility.
    Date: 2016

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