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on Technology and Industrial Dynamics |
| By: | Christine Greenhalgh (Oxford Intellectual Property Research Centre, St Peter's College, Oxford University); Mark Rogers (Harris Manchester College, Oxford University) |
| Abstract: | This paper provides evidence from a newly constructed database of UK firms about the extent of their intellectual property acquisition activities over five years. We focus on service sector firms, which have not previously been studied, with comparisons for firms in manufacturing and other sectors, such as agriculture. The measures of IP include both trade marks, which are most important in services, and patents, which are predominantly sought by manufacturing firms. The analysis includes patents and trade marks applied for via both the UK and European routes. While IP assets sought through the UK Patent Office remained strong, more services firms were seeking European Community trade marks and more manufacturing firms were seeking patents via European Patent Office through time. Firm characteristics that are positively correlated with IP activity include larger firm size, stock market listed status and high product market diversification. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n03&r=tid |
| By: | Fershtman, Chaim; Markovich, Sarit |
| Abstract: | R&D is an inherently dynamic process which involves different intermediate steps that need to be developed before the completion of the final invention. Firms are not necessarily symmetric in their R&D abilities; some may have advantages in early stages of the R&D process while others may have advantages in other stages of the process. The paper uses a simple two-firm asymmetric ability multistage R&D race model to analyse the effect of different types of patent policy regimes and licensing arrangement on the speed of innovation, firm value and consumers' surplus. The paper demonstrates the circumstances under which a weak patent protection regime, which facilitates free imitation of any intermediate technology, may yield a higher overall surplus than a regime that awards patent for the final innovation. This result holds even in cases where the length of the patent is optimally calculated. |
| Keywords: | licensing; patent protection; R&D race |
| JEL: | D43 L1 O3 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5481&r=tid |
| By: | Xiao, Mo; Orazem, Peter |
| Abstract: | We extend Bresnahan and Reiss’s (1991) model of local oligopoly to allow firm entry and exit over time. In our framework, entrants have to incur sunk costs in order to enter a market. After becoming incumbents, they disregard these entry costs in deciding whether to continue operating or to exit. We apply this framework to study market structure and competitive conduct in local markets for high-speed Internet service from 1999 to 2003. Replication of Bresnahan and Reiss’s framework generates unreasonable variation in firms’ competitive conduct over time. This variation disappears when entry costs are allowed. We find that once the market has one to three firms, the next entrant has little effect on competitive conduct. We also find that entry costs vary with the order of entry, especially for early entrants. Our findings highlight the importance of sunk costs in determining entry conditions and inferences about firm conduct. |
| Keywords: | Broadband, High-Speed Internet, Entry, Exit, Competition, Pricing, oligopoly |
| JEL: | L8 |
| Date: | 2006–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12500&r=tid |
| By: | Christel Lane; Jocelyn Probert |
| Abstract: | In this paper we examine the sourcing strategies of clothing firms in the developed economies of the UK and Germany in the context of their national institutional framework. We argue that, as a result of their embeddedness in divergent national structures, these firms pursue different sourcing strategies and make different locational choices. We place particular emphasis on the different mix of armsÕ length and relational contracting that firms develop, and on the divergent degree of control over the manufacturing process and the product that they retain. We suggest that the construction of global production networks and control over supplier firms is mediated by co-ordinating firmsÕ product strategy and the degree of dependence on national retailers this engenders. In the UK and Germany, firms and their networks differ from the US case which is normally taken as representative of the industry. |
| Keywords: | clothing industry, global production networks, capabilities |
| JEL: | L22 L23 L67 J2 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp318&r=tid |
| By: | Dunia López-Pintado (Universidad de Alicante) |
| Abstract: | This paper studies the problem of spreading a product (an idea or a technology) among agents in a social network. An agent obtains the product with a probability that depends on the spreading rate (or degree of contagion) of the product as well as on the behaviour of the agent?s neighbours. This paper shows, using a mean field approach, that there exists a threshold for the spreading rate that shapes the pattern of the product?s diffusion. This threshold, that depends on the network structure and the mechanism of contagion, determines whether the product spreads and becomes persistent or it does not spread and vanishes. |
| Keywords: | social networks, diffusion, contagion. |
| JEL: | C73 |
| Date: | 2004–09 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2004-33&r=tid |
| By: | Maria Jose Gil-Molto (Dept of Economics, Loughborough University); Joanna Poyago-Theotoky (Dept of Economics, Loughborough University) |
| Abstract: | We study firms' adoption of flexible versus dedicated technologies in the context of a mixed versus a private duopoly with product differentiation. The flexible technology allows a firm to become multiproduct or multimarket without bearing additional costs. We find that a configuration where both firms adopt flexible technologies is more likely to arise in equilibrium in the private duopoly. A similar result occurs when both firms use a dedicated technology in the case of either almost independent products or products that are close substitutes. Privatization of the public firm is socially beneficial only in limited circumstances. |
| Keywords: | Flexible Technology, Privatization, Public Firm, Mixed Duopoly. |
| JEL: | L32 L33 L13 O33 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2006_1&r=tid |
| By: | Christine Greenhalgh (Oxford Intellectual Property Research Centre, St Peter's College, Oxford University); Mark Rogers (Harris Manchester College, Oxford University) |
| Abstract: | This paper uses a new data set of the trade mark activity of UK manufacturing and service sector firms (1996-2000) to investigate the market value of trade marks. Data on both trade (and service) marks sought via the UK Patent Office (UKTM) and the European Community Office for Harmonisation of the Internal Market (CTM) are available. Firms use trade marks to signal to consumers that the product is of a certain origin, implying consistent quality and reducing consumer search costs, thus increasing customer loyalty. The value of trade marks may vary across firms and industries, depending on such factors as whether or not patents can be filed and the market structure. Equally the costs of trade marks vary between UKTM and CTM applications, being higher for the latter. We analyse Tobin's q, the ratio of stock market value to the book value of tangible assets. We explore the impact of undertaking any trade mark activity and also the effects of increasing trade mark intensity among those who do. The results indicate that stock market values are positively associated with R&D and trade mark activity by firms. We find larger differences between firms with and without trade marks for services than for manufacturing. We also find bigger differences in Tobin's q when the services firm is applying for Community marks, rather than just applying for UK marks. Increasing the intensity of trade marks matters for both manufacturing and services, although at a decreasing marginal rate for manufacturing and only for the years excluding 2000 for services. The rapid fall in the UK stock market in 2000 appeared to negate the benefits of trade marks for innovative services firms. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n04&r=tid |
| By: | Karin Joeveer |
| Abstract: | There are no stylized facts about the capital structure of small firms. Therefore, in this paper I use firm data from 10 Western European countries to contrast the sources of leverage across small and large firms. Specifically, I jointly evaluate the explanatory power of firm-specific, country of incorporation institutional, and macroeconomic factors. Using data that is more comprehensive in coverage than that used in the existing research, I confirm the stylized facts of the capital structure literature for large and listed firms, but I obtain contrasting evidence for smaller companies: First, the country of incorporation carries much more information for small firms supporting the idea that small firms are more financially constrained and face non-firm-specific hurdles in their capital structure choice. Second, using two different leverage measures I show that the relationship of firm size and tangibility to leverage is robust to the measure used for listed, but not for unlisted, firms. |
| Keywords: | Capital structure, Publicly traded and privately hold companies, Europe. |
| JEL: | G32 |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp283&r=tid |