nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2013‒08‒23
one paper chosen by
Rui Baptista
Technical University of Lisbon

  1. A look at both sides of the coin: Investigating the protective and the disclosure effect of patenting By Heger, Diana; Zaby, Alexandra K.

  1. By: Heger, Diana; Zaby, Alexandra K.
    Abstract: This paper presents a theoretical and empirical investigation of the two basic effects of patenting: the positive effect of temporarily mitigating competition, and the negative effect of mandatory disclosure of a patent application. Providing empirical evidence for the presented theoretical results we find that (i) a technological lead and the propensity to patent are negatively related as opposed to common intuition, (ii) in industries with imperfect appropriability in case of secrecy the extent of the technological lead is positively associated with the propensity to patent, and that (iii) the intensity of patent protection mitigates the competitive threat a patentee faces. --
    Keywords: patenting decision,disclosure requirement,patent scope,vertical product differentiation,IPC codes
    JEL: L13 O14 O33 O34
    Date: 2013

This nep-tid issue is ©2013 by Rui Baptista. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.