nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2023‒01‒09
four papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. How Patent Rights Affect University Science By Laurent Bergé; Thorsten Doherr; Katrin Hussinger
  2. Characterising science-industry patent collaborations: knowledge base, impact and economic value By Ugo Rizzo; Valerio Sterzi
  3. The determinants of parallel invention : Measuring the role of information sharing and personal interaction between inventors By Kang, Byeongwoo; Bekkers, Rudi
  4. Competition between Generic and Brand Name Drugs: New Evidence from the U.S. Pharmaceutical Market By Alberto Cavaliere; Ashin Moayedizadeh

  1. By: Laurent Bergé (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Thorsten Doherr; Katrin Hussinger
    Abstract: How do intellectual property rights influence academic science? We investigate the consequences of the introduction of software patents in the U.S. on the publications of university researchers in the field of computer science. Difference-in-difference estimations reveal that software scientists at U.S. universities produced fewer publications (both in terms of quantity and quality) than their European counterparts after patent rights for software inventions were introduced. We then introduce a theoretical model that accounts for substitution and complementarity between patenting and publishing as well as for the direction of research. In line with the model's prediction, further results show that the decrease in publications is largest for scientists at the bottom of the ability distribution. Further, we evidence a change in the direction of research following the reform towards more applied research.
    Keywords: Patent rights, Publications, Economics of science, Difference-in-difference estimation, Model of science production
    Date: 2022–12–09
  2. By: Ugo Rizzo; Valerio Sterzi (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this article, we analyse the characteristics of science-industry patents with respect to noncollaborative industry patents and industry-industry collaborative patents. This analysis covers patents filed in the years 1978-2015 (and granted up to 2020) at the European Patent Office (EPO) in four large European countries (Germany, France, Italy and the UK) and in the US. We consider three dimensions to assess the characteristics of patents: the knowledge base, the technological impact, and the economic value. Science-industry collaborative patents are averagely more sophisticated and similar or higher impact than other industry patents. However, depending on the proxy chosen, they are of similar or lower economic value compared to non-collaborative industry patents and to industry-industry collaborative patents. When we control for the experience of private companies in collaborating with academic institutions, we observe that more experienced collaborations produce slightly less sophisticated and impactful patents, but with higher economic value. We discuss different explanations of these findings.
    Abstract: Dans cet article, nous analysons les caractéristiques des brevets collaboratifs science industrie par rapport aux brevets industriels non collaboratifs et aux brevets collaboratifs industrie‐industrie. Cette analyse porte sur les brevets déposés au cours des années 1978‐2015 (et accordés jusqu'en 2020) à lʹOffice européen des brevets (OEB) dans quatre grands pays européens (Allemagne, France, Italie et Royaume‐Uni) et aux États‐Unis. Nous considérons trois dimensions pour évaluer les caractéristiques des brevets : la base de connaissances, l'impact technologique et la valeur économique. Les brevets de collaboration science‐industrie sont en moyenne plus sophistiqués et ont un impact similaire ou supérieur aux autres brevets industriels. Cependant, selon l'indicateur choisi, leur valeur économique est similaire ou inférieure à celle des brevets industriels non collaboratifs et des brevets collaboratifs industrie‐industrie. Lorsque nous contrôlons l'expérience des entreprises privées en matière de collaboration avec les institutions académiques, nous observons que les collaborations plus expérimentées produisent des brevets légèrement moins sophistiqués et moins impactant, mais avec une valeur économique plus élevée. Nous discutons les différentes explications de ces résultats.
    Keywords: University patent, Patent value, Patent collaboration, Science- Industry
    Date: 2022–12–13
  3. By: Kang, Byeongwoo; Bekkers, Rudi
    Abstract: Historical accounts describe numerous cases of parallel invention. Nowadays, with over half a million inventions yearly that apply for patent protection at the USPTO alone, it is likely that there are a lot of parallel inventions among these. Yet, the mechanisms behind creating similar knowledge remain unstudied. From both a theoretical and practical perspective, it is an interesting question to what degree parallel inventions take place truly independent of each other, or whether they are the result of the exchange of knowledge and ideas between inventors. In our empirical study, we use the unique setting of technical standardization, where it is possible to systematically observe knowledge sharing as well as knowledge exchanges between inventors in detail. This study presents two novel analyses, one focussing on the determinants of similar inventions (using an AI-based approach) and one on the determinants of identical inventions (exploiting data from the patent granting procedure). In both analyses, we find positive and significant effects for knowledge sharing as well as for inventor interaction as determinants. The latter effect is the strongest: if meet in person and discuss their ideas, the likelihood of similar inventions increases up to a factor of approximately five, to up to 2.3 percentage points. Empirically confirming the theoretical work of Amabile (1983, 1988) on knowledge creation at the individual level and that of Nonaka (1994, 2006) on knowledge creation at the organizational level, we reflect on the implications of our findings for companies wishing to increase their inventive efforts.
    Keywords: Creativity, Idea twin, Knowledge creation, Patent similarity, Similar knowledge
    JEL: O31 D82
    Date: 2022–11
  4. By: Alberto Cavaliere (University of Pavia); Ashin Moayedizadeh (University of Pavia)
    Abstract: This paper explores different aspects of competition in the U.S. pharmaceutical industry in order to broaden our insight into price competition in the pharmaceutical market. The main focus is on the effects of patent expiry and generic entry on the brand and generic name drug prices. Using an unbalanced panel dataset of 19 branded and corresponding generic drugs, which faced their first generic entry between 2010 and 2014, we discovered that the Generic Competition Paradox does not arise according to the results obtained with our dataset. Though prices of brand-name drugs are continuously rising, each new generic entrant is associated with an average 2.6 percent decrease in the brand-name drug price. Moreover, the empirical findings in this study fully support the idea of market segmentation based on insurance coverage. We can state that after generic entry, the originator firms appear to demand higher prices in order to exercise price discrimination and exploit the market segment that is less price sensitive.
    Keywords: Pharmaceutical industry, Generic entry, Brand drug price, Generic Competition Paradox, Market segmentation theory
    JEL: I11 L11 L65 D4
    Date: 2022–12

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