nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2013‒09‒24
two papers chosen by
Rui Baptista
Technical University of Lisbon

  1. Patent Commons, Thickets, and Open Source Software Entry by Start-Up Firms By Wen Wen; Marco Ceccagnoli; Chris Forman
  2. Estimating Dynamic R&D Demand: An Analysis of Costs and Long-Run Benefits By Bettina Peters; Mark J. Roberts; Van Anh Vuong; Helmut Fryges

  1. By: Wen Wen; Marco Ceccagnoli; Chris Forman
    Abstract: We examine whether the introduction of a patent commons, a special type of royalty free patent pool available to the open source software (OSS) community influences new OSS product entry by start-up software firms. In particular, we analyze the impact of The Commons—established by the Open Source Development Labs and IBM in 2005. We find that increases in the size of The Commons related to a software market increase the rate of entry in the market by start-ups using a new product based on an OSS license. The marginal impact of The Commons on OSS entry is increasing in the cumulativeness of innovation in the market and the extent to which patent ownership in the market is concentrated.
    JEL: L86 O34
    Date: 2013–08
  2. By: Bettina Peters; Mark J. Roberts; Van Anh Vuong; Helmut Fryges
    Abstract: Using firm-level data from the German manufacturing sector, we estimate a dynamic, structural model of the firm's decision to invest in R&D and quantify the cost and long-run benefit of this investment. The model incorporates and quantifies linkages between the firm's R&D investment, product and process innovations, and future productivity and profits. The dynamic model provides a natural measure of the long-run payoff to R&D as the difference in expected firm value generated by the R&D investment. For the median productivity firm, investment in R&D raises firm value by 3.0 percent in a group of high-tech industries but only 0.2 percent in low-tech industries. Simulations of the model show that cost subsidies for R&D can significantly affect R&D investment rates and productivity changes in the high-tech industries.
    JEL: L60 O30 O33
    Date: 2013–08

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