nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2018‒12‒17
five papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Spillover from the haven: Cross-border externalities of patent box regimes within multinational firms By Thomas Schwab; Maximilian Todtenhaupt
  2. Measuring the Impact of Household Innovation using Administrative Data By Javier Miranda; Nikolas Zolas
  3. Green Technology Diffusion: A Post-Mortem Analysis of the Eco-Patent Commons By Jorge L. Contreras; Bronwyn H. Hall; Christian Helmers
  4. Measuring Technological Innovation over the Long Run By Bryan Kelly; Dimitris Papanikolaou; Amit Seru; Matt Taddy
  5. Predicting success of mobile game after market launch using app downloads and sales revenues as performance indicators By Nam, Kyungjin; Kim, Hyejin

  1. By: Thomas Schwab (University of Mannheim, WU Vienna & ZEW); Maximilian Todtenhaupt (University of Mannheim & ZEW)
    Abstract: In this paper, we analyze the cross-border effects of patent box regimes that reduce the tax rate on income from intellectual property. We argue that the tax cut in one location of a multinational enterprise may reduce the user cost of capital for the whole group if profit shifting is possible. This spillover effect of the foreign tax cut raises domestic R&D investment. We test this mechanism by combining information on patents, firm ownership and specific characteristics of patent box regimes. Empirical results from a micro-level analysis suggest that patent box regimes without a nexus requirement (patent havens) induce positive cross-border externalities on R&D activity within multinational groups. For firms with cross-border links, the implementation of a foreign patent haven increases domestic research activity by about 2.3% per implied tax rate differential. Furthermore, our findings suggest that patent boxes generate negative spillovers on average patent quality. This has important implications for international tax policy and the evaluation of patent box regimes.
    Keywords: Patent box, spillover, corporate taxation, innovation
    JEL: F23 H25 O31
    Date: 2017
  2. By: Javier Miranda; Nikolas Zolas
    Abstract: We link USPTO patent data to U.S. Census Bureau administrative records on individuals and firms. The combined dataset provides us with a directory of patenting household inventors as well as a time-series directory of self-employed businesses tied to household innovations. We describe the characteristics of household inventors by race, age, gender and U.S. origin, as well as the types of patented innovations pursued by these inventors. Business data allows us to highlight how patents shape the early life-cycle dynamics of nonemployer businesses. We find household innovators are disproportionately U.S. born, white and their age distribution has thicker tails relative to business innovators. Data shows there is a deficit of female and black inventors. Household inventors tend to work in consumer product areas compared to traditional business patents. While patented household innovations do not have the same impact of business innovations their uniqueness and impact remains surprisingly high. Back of the envelope calculations suggest patented household innovations granted between 2000 and 2011 might generate $5.0B in revenue (2000 dollars).
    JEL: O3 O31
    Date: 2018–11
  3. By: Jorge L. Contreras; Bronwyn H. Hall; Christian Helmers
    Abstract: We revisit the effect of the “Eco-Patent Commons” (EcoPC) on the diffusion of patented environmentally friendly technologies following its discontinuation in 2016, using both participant survey and data analytic evidence. Established in January 2008 by several large multinational companies, the not-for-profit initiative provided royalty-free access to 248 patents covering 94 “green” inventions. Hall and Helmers (2013) suggested that the patents pledged to the commons had the potential to encourage the diffusion of valuable environmentally friendly technologies. Our updated results now show that the commons did not increase the diffusion of pledged inventions, and that the EcoPC suffered from several structural and organizational issues. Our findings have implications for the effectiveness of patent commons in enabling the diffusion of patented technologies more broadly.
    JEL: O13 O34 Q55
    Date: 2018–11
  4. By: Bryan Kelly; Dimitris Papanikolaou; Amit Seru; Matt Taddy
    Abstract: We use textual analysis of high-dimensional data from patent documents to create new indicators of technological innovation. We identify significant patents based on textual similarity of a given patent to previous and subsequent work: these patents are distinct from previous work but are related to subsequent innovations. Our measure of patent significance is predictive of future citations and correlates strongly with measures of market value. We identify breakthrough innovations as the most significant patents – those in the right tail of our measure – to construct indices of technological change at the aggregate, sectoral, and firm level. Our technology indices span two centuries (1840-2010) and cover innovation by private and public firms, as well as non-profit organizations and the US government. These indices capture the evolution of technological waves over a long time span and are strong predictors of productivity at the aggregate, sectoral, and firm level.
    JEL: E22 E32 N1 O3 O4
    Date: 2018–11
  5. By: Nam, Kyungjin; Kim, Hyejin
    Abstract: The world game industry, especially the mobile game market, has grown rapidly in recent years. One of the interesting characteristics of mobile game performance is that its lifetime is remarkably short compared to that of online games and most downloads are peaked in the early period of the service. Since the success of the game is largely dependent of this early performance, this study aims to predict the performance of mobile games right after launch and identify the factors which have influences on the success of the game. Using a multiple regression analysis with mobile game application downloads and sales revenue as performance indicators, this paper investigates the impacts of five main categories of independent variables; brand-related (awareness of IP and name value of publishers), information sources (platform rating and official domestic forum), media and promotion factors (TV commercials, pre-registration, press releases, YouTube videos), objective features (genre and payment type), and distribution-related variables (platform's market power and seasonal issues). TV commercial and pre-registration are significantly strong factors for both revenue and downloads. Google Play's featured banner and media and promotion factors such as press releases and YouTube videos are also important in revenue increase. Regarding the number of downloads, the use of IP (intellectual property) is a significant factor and puzzle games have relatively positive relationship than other genres. Surprisingly, however, the publishing firm (or rather the name value of the firm) didn't have significant impact on performance, and this might imply that there could be an opportunity for small and medium sized companies by investing in media and obtaining mobile platform advantages.
    Keywords: Mobile game industry,Game revenue,Game downloads,Regression analysis
    Date: 2018

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