Measuring the Rate of Obsolescence of Patents in Japanese Manufacturing Firms

Nakanishi, Yasuo and Yamada, Setsuo (2008): Measuring the Rate of Obsolescence of Patents in Japanese Manufacturing Firms.

Abstract

This article assesses the rate of obsolescence of patents with measurements of the rate in Japan. Our study departs from Parkes and Schankerman (1989) and Schankerman (1998) because of its application of the ordered probit model. The application of this model enables us to consider the case of noncontinuous renewal fees.

The estimated value of the rate of obsolescence in Chemicals is apparently large. Values of obsolescence rate in each industry except Chemicals are located above 24%. The obsolescence rate obtained by our estimates is apparently higher than in previous studies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Obsolescence rate, Patent, Innovation, Ordered probit model
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives

References

Bosworth,D. 1978. "The Rate of Obsolescence of Technical Knowledge-A Note, " Journal of Industrial Economics 26:273-279.

Goto,A., Honjyo, N., Suzuki, K. and Takinozawa, M. 1986. "Eocomic Analysis of Research and Development and Technological Progress," (in Japanese) Economic Analysis 103.

Goto,A. and Motohashi,K. 2007. "Development and Innovation of a Paten Database, " Web Site ;The Institute of Intellectual Property (IIP).

Grossman, G. and Helpman, E. 1991. Innovation and Growth, Cambridge:The MIT Press.

Hall,B., Jaff. A. and Trajtenberg, M. 2000. "Market value and patent citations: A First Look," National Bureau of Economic Research Working Paper No.7741.

Hall,B., Jaff. A. and Trajtenberg, M. 2005. "Market value and patent citations," RAND Journal of Economics 36:16-38.

Nadiri,I. and Schankerman, M. 1996. "Estimation of the Depreciation Rate of Physical and R\&D Capital in the U.S. Total Manufacturing Sector," Economic Inquiry 34:43-56.

NakajimaT. and Shinpo, K. 1998. "Does R\&D Investment Reduce Labor Demand?," (in Japanese) Mita Business Review 4:145-172.

Pakes,A. and Schankerman, M. 1979. "The Rate of Obsolescence of Knowledge, Research Gestation Lags, and the Private rate of Return to Research Resources," National Bureau of Economic Research Working Paper No.346.

Pakes,A. and Simpson, M. 1989. "Patent Renewal Data," Brookings Paper on Economic activity, Microeconomics 19:331-410.

Porter, M. 1990. The Competitive advantage of Nations, New York:Free Press.

Schankerman,M. 1998. "How Valuable is Patent Protection? Estimates by Technology Field, " RAND Journal of Economics 29:77-107.

Schumpeter, J. 1942. Capitalism, Socialism and Democracy, New York: Harper and Row.