nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2022‒08‒29
four papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Strategic differences between regional investments into graphene technology and how corporations and universities manage patent portfolios By Ai Linh Nguyen; Wenyuan Liu; Khiam Aik Khor; Andrea Nanetti; Siew Ann Cheong
  2. Australian Innovative Activity and Offshore Technology 1904 – 2016 By Grant Fleming; Frank Liu; David Merrett; Simon Ville
  3. When Do Consumers Talk? By Ishita Chakraborty; Joyee Deb; Aniko Oery
  4. Patents, Foreign Direct Investment and Economic Growth in Australia, 1860-2010 By Grant Fleming; Frank Liu; David Merrett; Simon Ville

  1. By: Ai Linh Nguyen; Wenyuan Liu; Khiam Aik Khor; Andrea Nanetti; Siew Ann Cheong
    Abstract: Nowadays, patenting activities are essential in converting applied science to technology in the prevailing innovation model. To gain strategic advantages in the technological competitions between regions, nations need to leverage the investments of public and private funds to diversify over all technologies or specialize in a small number of technologies. In this paper, we investigated who the leaders are at the regional and assignee levels, how they attained their leadership positions, and whether they adopted diversification or specialization strategies, using a dataset of 176,193 patent records on graphene between 1986 and 2017 downloaded from Derwent Innovation. By applying a co-clustering method to the IPC subclasses in the patents and using a z-score method to extract keywords from their titles and abstracts, we identified seven graphene technology areas emerging in the sequence synthesis - composites - sensors - devices - catalyst - batteries - water treatment. We then examined the top regions in their investment preferences and their changes in rankings over time and found that they invested in all seven technology areas. In contrast, at the assignee level, some were diversified while others were specialized. We found that large entities diversified their portfolios across multiple technology areas, while small entities specialized around their core competencies. In addition, we found that universities had higher entropy values than corporations on average, leading us to the hypothesis that corporations file, buy, or sell patents to enable product development. In contrast, universities focus only on licensing their patents. We validated this hypothesis through an aggregate analysis of reassignment and licensing and a more detailed analysis of three case studies - SAMSUNG, RICE UNIVERSITY, and DYSON.
    Date: 2022–08
  2. By: Grant Fleming; Frank Liu; David Merrett; Simon Ville
    Abstract: Australia has been a large consumer of patented offshore technology, which has led several authors to criticise the domestic innovation system. We deploy a new dataset of 1.4 million patent applications across a century to evaluate empirically this perspective. Our results reveal that Australians held an important though diminishing share of patents and indicate the shifting contribution among other nations. Using revealed technology advantage, we show that local patenting focussed on areas key to the growth of the Australian economy.
    Keywords: Innovation System; Patents; Revealed Technological Advantage; Australia; Natural Resources
    JEL: O13 O31 N77
    Date: 2022–08
  3. By: Ishita Chakraborty (Yale School of Management); Joyee Deb (Cowles Foundation, Yale University); Aniko Oery (Cowles Foundation, Yale University)
    Abstract: The propensity of consumers to engage in word-of-mouth (WOM) can di?er after good versus bad experiences, resulting in positive or negative selection of user-generated reviews. We study how the propensity to engage in WOM depends on information available to customers through di?erent marketing channels. We develop a model of WOM in which a target customer makes a purchase decision based on his private brand association, public product-speci?c information (e.g. from advertising or past reviews) and WOM content, and an early adopter of the new product engages in WOM only if her information is instrumental to the target customer’s purchase decision. We de?ne brand image to be the distribution of the customers’ brand associations, and strength of the brand image to be the precision of this distribution. We show that if the brand image is strong, then in equilibrium only negative WOM can arise. In contrast, with a weak brand image, positive WOM must occur. Moreover, holding product quality ?xed, a positive advertising signal realization leads to a more positive WOM selection. We use restaurant review data from to motivate our model assumptions and validate the predictions. For example, a textual analysis of reviews is consistent with prevalence of an instrumental motive for WOM. Further, a review rating for national established chain restaurant locations, where the brand image is strong, is almost 1-star lower (on a 5-star scale) than a review rating for a comparable independent restaurant, controlling for reviewer and restaurant characteristics.
    Keywords: Brand image, Costly communication, Recommendation engines, Review platforms, Word of mouth
    Date: 2020–08
  4. By: Grant Fleming; Frank Liu; David Merrett; Simon Ville
    Abstract: We examine the long run relationship between innovation and economic development in Australia, using 150 years of data on patenting activity, and aggregate and sectoral economic indicators. Our initial results point to several important causal relationships, particularly the effects of patents on real GDP and of private capital formation on patents. We delve deeper at the sector level and find important causal relationships of patents with real foreign direct investment (FDI) since World War Two. Australia’s dependence on FDI for private capital formation served as an important stimulus for knowledge creation in key sectors including agriculture and mining.
    Date: 2022–08

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