nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2018‒01‒01
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. The role of research and ownership collaboration in generating patent quality: China-U.S comparisons By Gary H. Jefferson; Renai Jiang; Lintong Li; Sam Zucker
  2. Umbrella Branding in Pharmaceutical Markets By Suppliet, Moritz
  3. Patent licensing in the presence of a differentiated good By Jiyun Cao; Uday Bhanu Sinha

  1. By: Gary H. Jefferson (Brandeis University); Renai Jiang (Xi'an Jiaotong University); Lintong Li (Princeton University); Sam Zucker (Brandeis University)
    Abstract: This paper uses patent data from the U.S. Patent and Trademark Office to investigate the implications of inventor collaboration and joint assignee ownership, both domestic and international, on patent quality as measured by the number of claims and citations associated with a patent. Specifically, we compare the quality implications of research collaboration and joint ownership for the quality of U.S. and Chinese patents. Overall, we find that domestic inventor collaboration yields higher quality results for U.S. patents than Chinese patents. However, for China, international collaboration, both for inventors and assignee ownership is associated with higher quality outcomes for Chinese patents than for U.S. patents. We also find that the incidence of inventors sharing assignee ownership is significantly higher in China. We hypothesize that this difference reflects a need in China to extend patent ownership to inventors for the purpose of recruiting and incentivizing a relatively limited supply of high-quality researchers, whereas in the U.S. the abundance of such researchers is retained largely through wage and bonus compensation.
    Date: 2017–11
  2. By: Suppliet, Moritz
    Abstract: Umbrella branding is a marketing practice whereby multi-product firms leverage their reputation across different product categories. This paper investigates how advertising in the market of over-the-counter (OTC) drugs affects the decision to buy prescription drugs from a promoted brand name. I exploit specific charac- teristics of market regulation in Germany to identify the effect of advertising and find positive effects of umbrella branding on sales of prescription drugs. Umbrella branding results in market expansion, particularly for generic firms which invest in OTC drug advertising. If the effect leads to more consumers of generic substitutes or to more patients in undertreated therapeutic areas, market expansion can have a positive effect on welfare.
    Keywords: umbrella branding; regulation; empirical io; pharmaceuticals ; marketing
    JEL: I3 L51 I1 M37 D22 C18
    Date: 2017
  3. By: Jiyun Cao (The School of Economics, Nankai University and Collaborative Innovation Center for China Economy, Tianjin, China); Uday Bhanu Sinha (Department of Economics, Delhi School of Economics)
    Abstract: The existing literature has considered licensing of a patented innovation either in a homogenous good industry or in a differentiated goods industry. We consider the licensing problem between two firms i.e., licensor and licensee producing the homogenous goods when there is a third firm producing a differentiated good in the market. We find that when the costs of non-innovators are not high, the optimal licensing contract depends on the degree of product differentiation and the innovator has more incentive for innovation when it is an insider than when it is an outsider of this market.
    Keywords: licensing, two-part tariff, Cournot oligopoly, homogenous and differentiated goods, incentive for innovation.
    JEL: D43 D45 L13
    Date: 2017–12

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