nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2019‒06‒17
seven papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Tax Policy for Innovation By Bronwyn H Hall
  2. Concordance and Complementarity in IP Instruments By Marco Grazzi; Chiara Piccardo; Cecilia Vergari
  3. Linkage of Patent and Design Right Data: Analysis of Industrial Design Activities in Companies at the Creator Level (Japanese) By IKEUCHI Kenta; MOTOHASHI Kazuyuki
  4. Technology Transfer at the U.S. National Institute of Standards and Technology (NIST) By Link, Al
  5. Private Labels and Product Quality under Asymmetric Information By Zhiqi Chen; Heng Xu
  6. The Impact of Spillover Pools on Firm Patent Applications in Japan (Japanese) By EDAMURA Kazuma
  7. The treatment of Intellectual Property in the National Accounts By Robin Lynch

  1. By: Bronwyn H Hall
    Abstract: A large number of countries around the world now provide some kind of tax incentive to encourage firms to undertake innovative activity. This paper presents the policy rationale for these incentives, discusses their design and potential effectiveness, and reviews the empirical evidence on their actual effectiveness. The focus is on the two most important and most studied incentives: R&D tax credits and super deductions, and IP boxes (reduced corporate taxes in income from patents and other intellectual property).
    Keywords: R&D tax credit, patent box, super deduction, IP box, tax subsidy, innovation
    JEL: H25 O32 O38
    Date: 2019–06
  2. By: Marco Grazzi; Chiara Piccardo; Cecilia Vergari
    Abstract: This work investigates the relationship between proxies of innovation activities, such as patents and trademarks, and firm performance in terms of revenues, growth and profitability. By resorting to the virtual universe of Italian manufacturing firms this work provides a rather complete picture of the Intellectual Property (IP) strategies pursued by Italian firms, in terms of patents and trademarks, and we study whether the two instruments for protecting IP exhibit complementarity or substitutability. In addition, and to our knowledge novel, we propose a measure of concordance (or proximity) between the patents and trademarks owned by the same firm and we then investigate whether such concordance exert any effect on performance.
    Keywords: Trademarks; Patents; Innovation; Intellectual Property; Complementarity; Concordance; Technological proximity; firm performance; firm growth.
    Date: 2019–06–14
  3. By: IKEUCHI Kenta; MOTOHASHI Kazuyuki
    Abstract: In addition to technological superiority (functional value), attention to design superiority (semantic value) is increasing as a source of competitiveness of new products relative to competing products. In this research, we connect patent right data and design right data at the inventor / creator level, and quantitatively analyze corporate organizations related to design innovation. First, machine learning was performed on a classification model for name disambiguation of inventors / creators using patent right and design right applications to the Japan Patent Office. The training data was constructed using rare name information that is less likely to have the same problem. By interconnecting the inventors' and creators' identifiers estimated with the learned classification model, we identified design creators who also created the patent inventions. Next, using this information, the participation status of the design creator in the patent invention was organized by time series and design category. As a result, it was found that the division of innovative labor into invention activity and design activity is in progress. Furthermore, we confirmed that this division of labor is particularly advanced among major patent applicants. As background information, specialization and fragmentation of innovation activities, utilization of external designers and open innovation may be examples of progress influencing the process.
    Date: 2019–03
  4. By: Link, Al (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper analyzes the inter-relationship among technology transfer mechanisms using data specific to the U.S. National Institute of Standards and Technology (NIST). An overview of the history of NIST and U.S. policies that emphasize the economic importance of technology transfer are discussed. The empirical analysis focuses on NIST's investments in R&D and the cascading impact of those investments on new inventions disclosed, new patent applications, new patents issued, and the new patent licenses; and accounting for the effects of R&D on these three investments, an overall estimate of the R&D elasticity of new patent licenses is calculated to be 0.7976. The paper concludes with a policy-focused summary of the implications of the empirical findings, and a suggested roadmap for future research related to technology transfer from U.S. Federal laboratories.
    Keywords: technology transfer; federal laboratories; NIST; R&D; patents;
    JEL: H40 O31 O38
    Date: 2019–06–19
  5. By: Zhiqi Chen (Department of Economics, Carleton University); Heng Xu (Business School, China University of Political Science and Law)
    Abstract: Contrary to the existing theories of private label products, we demonstrate that the introduction of a private label product by a retailer may improve the profits of the supplier of a competing national brand product. Our theory is built on two main elements. First, the introduction of a private label product may expand the total demand for the products carried by the retailer and thus enlarge the joint profit to be split between the retailer and the supplier of the national brand product. Second, in an environment where consumers do not know the quality of the private label product, the national brand serves as a bond to assure consumers that the retailer sells high-quality products only. This quality assurance enhances the joint profit generated by the introduction of the private label product, which, in conjunction with the weakening of the retailer’s bargaining position caused by asymmetric information, may enable the national brand supplier to earn a larger profit than in the absence of the private label product.
    JEL: L20 L15
    Date: 2019–06–03
  6. By: EDAMURA Kazuma
    Abstract: In this paper, the impact of spillover pools on patent application behavior of firms in Japan was analyzed empirically using firm-level data from the Survey of Research and Development and the IIP patent database. The spillover pools are calculated with technological distance using the Mahalanobis distance considering the complementarity between technologies for each industry, academia and government. The proxy for firm applications is the number of patent applications. The results of the regression on the count data model employed here show that impact of spillover pools on the number of patent application by firm is positive. Spillover pools from industry, university, and national research institute also have a positive impact on the number of firm patent applications. In addition, spillover pools from basic, applied, and development research have positive impacts.
    Date: 2019–04
  7. By: Robin Lynch
    Abstract: The paper identifies flaws in the treatment of Intellectual Property as an intangible asset in the current national accounts international standards. It is proposed that the treatment should revert to that of the 1968 System of National Accounts (SNA), where payments for access to Intellectual Property were classified as property income (income transfers) and not as payment for services as in SNA 2008 and the European System of Accounts (ESA) 2010. This dramatic change in treatment has had unfortunate results, most visibly in the case of the revision to GDP estimates for Ireland. In 2016, the estimate for Ireland’s 2015 annual GDP growth was revised upwards from 7.8% to 26.3%. This was caused mainly by a relocation of a large multinational’s registration of Intellectual Property from mainland Europe. The associated access payments were treated as a set of new exports of services, with the subsequent large increase in the GDP level and growth measures of the Irish economy. This paper sets out how the current standards lead to this widely criticised change and proposes a model which is consistent with the 1968 SNA treatment.
    Keywords: system of national accounts, intellectual property, intangibles
    JEL: E01 E22
    Date: 2019–06

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