nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2012‒07‒29
four papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Patents, competition and firms’ innovation incentives By Pilar Beneito; María E. Rochina-Barrachina; Amparo Sanchis
  2. Inventors and Imposters: An Analysis of Patent Examination with Self-Selection of Firms into R&D By Schuett, F.
  3. Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm's Performance. A Comparative Firm-level Analysis for Switzerland and Austria By Martin Berger; Heinz Hollenstein
  4. Universities, Entry and Growth By Antonio Della Malva; Martin Carree; Enrico Santarelli

  1. By: Pilar Beneito (University of Valencia and ERICES); María E. Rochina-Barrachina (University of Valencia and ERICES); Amparo Sanchis (University of Valencia and ERICES)
    Abstract: In this paper we analyze how industrial property rights (IPRs), measured by patents granted, affect competition at the industry level, and their induced effects on firms’ innovation incentives. We use for that purpose a panel dataset of Spanish manufacturing firms for the period 1990-2006. Using indicators of fundamentals of competitive pressure and factor analysis techniques, we construct a new synthetic measure of competition. Our results indicate that although the use of IPRs (in terms of industry patenting intensity) reduces market competition, it may also encourage firms’ innovation incentives (in terms of firms’ R&D expenditures and the number of product innovations).
    Keywords: IPRs, patents, competition, innovation
    JEL: D22 L10 L60 O31 O34
    Date: 2012–07
  2. By: Schuett, F. (Tilburg University, Tilburg Law and Economics Center)
    Abstract: Abstract: I present a model in which firms differing in R&D productivity choose between ambitious research projects, which are socially desirable, and unambitious ones, which are socially undesirable. The patent office must decide how rigorously to examine applications, which affects the probability of weeding out bad applications but also how firms self-select into more or less ambitious projects. Both the ex post and ex ante welfare effects need to be taken into account in determining the optimal examination intensity. The model allows me to assess the impact of various policy changes on examination and welfare, including the creation of specialized patent courts, post-grant opposition, and the delegation of fee-setting authority to the patent office. It generates a number of predictions that are consistent with empirical evidence on the patent system.
    Keywords: innovation;patent office;optimal patent policy.
    JEL: O31 O38 D73 D82 L50
    Date: 2012
  3. By: Martin Berger; Heinz Hollenstein (WIFO)
    Abstract: The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.
    Keywords: Internationalisation of R&D, Governance of foreign R&D, International R&D cooperation
    Date: 2012–07–18
  4. By: Antonio Della Malva; Martin Carree; Enrico Santarelli
    Abstract: The anecdotal evidence provided by the literature on high tech clusters has paved the way to systematic explorations of the localized effects of academic research on technological success and economic development. Prime drivers of such development are new entrants. New entrants are more likely to embark in the risky activity of developing new products and/or new processes, they often open up new markets, restructure existing ones, replace declining industries and reshape local markets. Studies on the relation between academic R&D and business entry have found modest effects of the former on the latter. Recent empirical findings in the field of technology transfer, however, suggest that quality of academic research and the entrepreneurial attitude by faculty be the main factors explaining economic relevance of academic R&D. In this study we test the hypothesis that knowledge spilling over departments conducting cutting-edge research generates higher entry in related technology-intensive sectors than lower standing departments. We thus explore the extent to which the quantity, quality and orientation of research carried on at universities stimulates differently market entry in high-tech and low-tech sectors and the consequences of entry (high and low tech) on economic growth. We use data on business entry in 103 Italian provinces (NUTS3) between 2001 and 2006; we relate entry to a battery of measures of university presence in the province: the number of students graduated in scientific disciplines in 2001, the scientific productivity of academics between 1985 and 1999 and the number of patents invented by academics between 1978 and 2000. We apply a three-equation recursive model where in the first place we estimate the contribution of universities to entry, both in high-tech and low tech sectors and secondly the effects of entry and universities on economic growth. Additionally, we include patents and trademarks to control for the existence of innovative activities from the private sector, the presence and relevance of industrial districts to account for industrial specialization, the quality of road infrastructures and the existence of business service providers to support the creation of new ventures.
    Date: 2011–09

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