nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒01‒10
five papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Evaluating the US pharmaceutical patent policy By Izhak, Olena; Saxell, Tanja; Takalo, Tuomas
  2. World Corporate Top R&D investors: Paving the way to carbon neutrality By Sara Amoroso; Leonidas Aristodemou; Chiara Criscuolo; Antoine Dechezleprete; Helene Dernis; Nicola Grassano; Laurent Moussiegt; Lorenzo Napolitano; Daisuke Nawa; Mariagrazia Squicciarini; Alexander Tuebke
  3. Innovation Performance and the Signal Effect: Evidence from a European Program By Nadine Levratto; Aurelien Quignon
  4. Technology-Skill Complementarity and Labor Displacement: Evidence from Linking Two Centuries of Patents with Occupations By Leonid Kogan; Dimitris Papanikolaou; Lawrence D. W. Schmidt; Bryan Seegmiller
  5. The Determinants of Design Applications in Europe By Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio; Leogrande, Domenico

  1. By: Izhak, Olena; Saxell, Tanja; Takalo, Tuomas
    Abstract: The debate on whether COVID-19 vaccine patents are slowing down the pace of vaccination and the recovery from the crisis has brought the optimal design of pharmaceutical patent policy to the fore. In this paper we evaluate patent policy in the US pharmaceutical industry. We estimate the effect of patent length and scope on generic entry prior to the expiration of new drug patents using two quasi-experimental approaches: one based on changes in patent laws and another on the allocation of patent applications to examiners. We find that extending effective patent length increases generic entry whereas broadening protection reduces it. To assess the welfare effects of patent policy, we match these empirical results with a model of new drug development, generic entry, and patent length and scope. Optimal policy calls for shorter but broader pharmaceutical patents.
    JEL: I18 K20 L13 O34 O31
    Date: 2021–12–29
  2. By: Sara Amoroso (European Commission - JRC); Leonidas Aristodemou (OECD); Chiara Criscuolo; Antoine Dechezleprete (OECD); Helene Dernis (OECD); Nicola Grassano (European Commission - JRC); Laurent Moussiegt (OECD); Lorenzo Napolitano (European Commission - JRC); Daisuke Nawa (OECD); Mariagrazia Squicciarini; Alexander Tuebke (European Commission - JRC)
    Abstract: This biennial report continues the joint JRC-OECD analysis of the IP portfolios of the world's top 2 000 R&D investors. The report shows that global R&D and patenting activities are highly concentrated among the world’s top 2 000 R&D investors. These are equivalent to 87% of global business R&D expenditures by the private sector and 63% of patent filings across all technologies. There is much less concentration at the commercialisation stage, with only 6% of total trademarks owned by the top R&D investors. The world’s top R&D investors are key contributors to global climate-related innovation. They own 70% of global climate change mitigation or adaptation patents and over 10% of global climate-related trademarks, which is larger than their contribution to overall patents and trademarks across all fields. Looking at the potential contribution of the digital revolution to climate-related innovation at the invention stage, 20% of climate-related patents have a digital component (against 33% for patents across all technological fields). Finally, this edition of the report investigates for the first time the gender composition of both the board of directors of the top 2 000 R&D investors, and of their R&D workforce. In general, EU27 companies have on average more gender-balanced boards than the US and the Asian ones, with a women representation of at least 26%. A substantial gender gap is also observed for inventors listed in patent applications, with significant heterogeneity across countries and sectors.
    Keywords: R&D investment, Green Patent, Intellectual Property, Patents, Trademarks, Gender Balance
    Date: 2021–11
  3. By: Nadine Levratto (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Aurelien Quignon (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper seeks to estimate the effect of a European policy that subsidizes innovation investments. By carefully selecting observables, we compare recipients of the program with non-recipient firms to overcome the endogeneity of R&D grants. We conduct a difference-indifferences design on the universe of a unique firm-level dataset of European SMEs between 2008 and 2017. We find a significant effect of proof of concept grants, which implies an increase in the number of patent applications and the probability of patenting. There are positive impacts on credit financing, which suggest a signal effect to investors about the project quality of young firms.
    Keywords: Innovation,Patent,Financing constraints,H2020,R&D subsidies
    Date: 2021–12–06
  4. By: Leonid Kogan; Dimitris Papanikolaou; Lawrence D. W. Schmidt; Bryan Seegmiller
    Abstract: We construct new technology indicators using textual analysis of patent documents and occupation task descriptions that span almost two centuries (1850–2010). At the industry level, improvements in technology are associated with higher labor productivity but a decline in the labor share. Exploiting variation in the extent certain technologies are related to specific occupations, we show that technological innovation has been largely associated with worse labor market outcomes—wages and employment—for incumbent workers in related occupations using a combination of public-use and confidential administrative data. Panel data on individual worker earnings reveal that less educated, older, and more highly-paid workers experience significantly greater declines in average earnings and earnings risk following related technological advances. We reconcile these facts with the standard view of technology-skill complementarity using a model that allows for skill displacement.
    JEL: J01 J24 J3 N3 N6 O3 O4
    Date: 2021–12
  5. By: Leogrande, Angelo; Costantiello, Alberto; Laureti, Lucio; Leogrande, Domenico
    Abstract: In this article we estimate the level of “Design Application” in 37 European Countries in the period 2010-2019. We use data from the European Innovation Scoreboard-EIS of the European Commission. We perform four econometric models i.e., Pooled OLS, Panel Data with Random Effects, Panel Data with Fixed Effects, Dynamic Panel. We found that the level of Design Applications is negatively associated to “Enterprise Births”, “Finance and Support”, “Firm Investments” and positively associated with “Venture Capital”, “Turnover share large enterprises”, “R&D expenditure public sector”, “Intellectual Assets”. In adjunct we perform a cluster analysis with the application of the k�Means algorithm optimized with the Silhouette Coefficient and we found three different clusters. Finally, we confront eight different machine learning algorithms to predict the level of “Design Application” and we found that the Tree Ensemble is the best predictor with a value for the 30% of the dataset analyzed that is expected to decrease in mean of -12,86%.
    Keywords: Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Intellectual Property and Intellectual Capital.
    JEL: O30 O31 O32 O33 O34
    Date: 2021–11–04

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