Ganguly, Madhuparna (2021): Stronger Patent Regime, Innovation and Scientist Mobility.
![Warning](/style/images/warning.png)
Preview |
PDF
MPRA_paper_107635.pdf Download (371kB) | Preview |
Abstract
This paper analyzes the effects of a stronger patent regime on innovation incentives, patenting propensity and scientist mobility when an innovating firm can partially recover its damage due to scientist movement from the infringing rival. The strength of the patent system, which is a function of litigation success probability and damage recovery proportion, stipulates expected indemnification. We show that stronger patents fail to reduce the likelihood of infringement and further, decrease the innovation's expected profitability. Higher potential reparation also reduces the scientist's expected return on R&D knowledge, entailing greater R&D investment. Our results suggest important considerations for patent reforms.
Item Type: | MPRA Paper |
---|---|
Original Title: | Stronger Patent Regime, Innovation and Scientist Mobility |
Language: | English |
Keywords: | Damage rules; Infringement; Patent strength; Scientist mobility |
Subjects: | J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J60 - General K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital |
Item ID: | 107635 |
Depositing User: | Miss Madhuparna Ganguly |
Date Deposited: | 10 May 2021 09:48 |
Last Modified: | 10 May 2021 09:48 |
References: | Agarwal, R., Ganco, M., & Ziedonis, R. H. (2009). Reputations for toughness in patent enforcement: Implications for knowledge spillovers via inventor mobility. Strategic Management Journal, 30 (13), 1349-1374. Allison, J. R., & Lemley, M. A. (1998). Empirical evidence on the validity of litigated patents. American Intellectual Property Law Association (AIPLA) Quarterly Journal, 26 , 185. (url: http://dx.doi.org/10.2139/ssrn.118149) Allred, B. B., & Park, W. G. (2007). Patent rights and innovative activity: Evidence from national and firm-level data. Journal of International Business Studies, 38 (6), 878-900. Almeida, P., & Kogut, B. (1999). Localization of knowledge and the mobility of engineers in regional networks. Management Science, 45 (7), 905-917. Anton, J. J., & Yao, D. A. (2007). Finding "lost" profits: An equilibrium analysis of patent infringement damages. The Journal of Law, Economics, & Organization, 23 (1), 186-207. Arora, A., Branstetter, L., & Chatterjee, C. (2008). Strong medicine: Patent reform and the emergence of a research-driven pharmaceutical industry in India. Working Paper, Heinz School of Public Policy, Carnegie Mellon University. Arrow, K. J. (1962). Economic welfare and the allocation of resources for invention. In Economic welfare and the allocation of resources for invention (pp. 609{626). edited by R. R. Nelson. Universities-National Bureau Conference Series no. 13. Princeton, N.J.: Princeton University Press (for NBER). Ayres, I., & Klemperer, P. (1999). Limiting patentees' market power without reducing innovation incentives: The perverse benefits of uncertainty and non-injunctive remedies. Michigan Law Review, 97 (4), 985-1033. Bessen, J., & Maskin, E. (2009). Sequential innovation, patents, and imitation. The RAND Journal of Economics, 40 (4), 611-635. Chen, Y., & Puttitanun, T. (2005). Intellectual property rights and innovation in developing countries. Journal of Development Economics, 78 (2), 474-493. Chen, Y., & Sappington, D. E. (2018). An optimal rule for patent damages under sequential innovation. The RAND Journal of Economics, 49 (2), 370-397. Chien, C. V., Contreras, J. L., Cotter, T. F., Love, B. J., Seaman, C. B., & Siebrasse, N. (2018). Enhanced damages, litigation cost recovery, and interest. Forthcoming in Patent Remedies and Complex Products: Toward a Global Consensus. (url: https://ssrn.com/abstract=3249212) Choi, J. P. (2009). Alternative damage rules and probabilistic intellectual property rights: Unjust enrichment, lost profits, and reasonable royalty remedies. Information Economics and Policy, 21 (2), 145-157. Cohen, W. M., Nelson, R. R., & Walsh, J. P. (2000). Protecting their intellectual assets: Appropriability conditions and why us manufacturing firms patent (or not). National Bureau of Economic Research. (url: https://www.nber.org/system/files/working papers/w7552/w7552.pdf) Dey, A., Kaushik, A. K., & Pal, R. (2019). Probabilistic patents, alternative damage rules, and optimal tariffs. Journal of Institutional and Theoretical Economics, 1-36. (doi: 10.1628/jite-2020-0001) Dinopoulos, E., & Kottaridi, C. (2008). The growth effects of national patent policies. Review of International Economics, 16 (3), 499-515. Encaoua, D., & Lefouili, Y. (2005). Choosing intellectual protection: Imitation, patent strength and licensing. Annales d'Economie et de Statistique 79/80, Special issue of Contributions in Memory of Zvi Griliches, Mairesse J, Trajtenberg M (eds.), 241-271. Falvey, R., Foster, N., & Greenaway, D. (2006). Intellectual property rights and economic growth. Review of Development Economics, 10 (4), 700-719. Gallini, N. T. (1992). Patent policy and costly imitation. The RAND Journal of Economics, 23 (1), 52-63. Gallini, N. T. (2002). The economics of patents: Lessons from recent us patent reform. Journal of Economic Perspectives, 16 (2), 131-154. Ganco, M., Ziedonis, R. H., & Agarwal, R. (2015). More stars stay, but the brightest ones still leave: Job hopping in the shadow of patent enforcement. Strategic Management Journal, 36 (5), 659-685. Gilbert, R., & Shapiro, C. (1990). Optimal patent length and breadth. The RAND Journal of Economics, 21 (1), 106-112. Hall, B. H. (2007). Patents and patent policy. Oxford Review of Economic Policy, 23 (4), 568-587. Hall, B. H., & Ziedonis, R. H. (2001). The patent paradox revisited: An empirical study of patenting in the us semiconductor industry, 1979-1995. The RAND Journal of Economics, 32 (1), 101-128. Hellmann, T. (2007). When do employees become entrepreneurs? Management Science,53 (6), 919-933. Hu, W., Yoshioka-Kobayashi, T., & Watanabe, T. (2020). Determinants of patent infringement awards in the US, Japan, and China: A comparative analysis. World Patent Information, 60 . (Article no. 101947, url: https://doi.org/10.1016/j.wpi.2019.101947) Iwaisako, T., Tanaka, H., & Futagami, K. (2011). A welfare analysis of global patent protection in a model with endogenous innovation and foreign direct investment. European Economic Review, 55 (8), 1137-1151. Jaffe, A. B. (2000). The us patent system in transition: Policy innovation and the innovation process. Research policy, 29 (4-5), 531-557. Kaiser, U., Kongsted, H. C., & Ronde, T. (2015). Does the mobility of R&D labor increase innovation? Journal of Economic Behavior & Organization, 110 , 91-105. Kanwar, S., & Evenson, R. (2003). Does intellectual property protection spur technological change? Oxford Economic Papers, 55 (2), 235-264. Kim, J., & Marschke, G. (2005). Labor mobility of scientists, technological diffusion, and the firm's patenting decision. The RAND Journal of Economics, 36 (2), 298-317. Kyle, M. K., & McGahan, A. M. (2012). Investments in pharmaceuticals before and after trips. Review of Economics and Statistics, 94 (4), 1157-1172. Lemley, M. A., & Shapiro, C. (2005). Probabilistic patents. Journal of Economic Perspectives, 19 (2), 75-98. Lerner, J. (2009). The empirical impact of intellectual property rights on innovation: Puzzles and clues. American Economic Review, 99 (2), 343-48. Moore, K. A. (2000). Judges, juries, and patent cases: An empirical peek inside the black box. Michigan Law Review, 99 (2), 365-409. Moser, P. (2005). How do patent laws influence innovation? evidence from nineteenth-century world's fairs. American economic review, 95 (4), 1214-1236. Oettl, A., & Agrawal, A. (2008). International labor mobility and knowledge flow externalities. Journal of International Business Studies, 39 (8), 1242-1260. Pakes, A., & Nitzan, S. (1983). Optimum contracts for research personnel, research employment, and the establishment of "rival" enterprises. Journal of Labor Economics, 1 (4), 345-365. Papageorgiadis, N., & Sharma, A. (2016). Intellectual property rights and innovation: A panel analysis. Economics Letters, 141 , 70-72. Reitzig, M., Henkel, J., & Heath, C. (2008). Who really pro�ts from patent infringements? A comparative international analysis of innovation and imitation incentives from patent indemnification rules. Working Paper No. 2002-18. LEFIC. Center for Law, Economics and Financial Institutions. (url: http://hdl.handle.net/10398/6827) Ronde, T. (2001). Trade secrets and information sharing. Journal of Economics & Management Strategy, 10 (3), 391-417. Rosenkopf, L., & Almeida, P. (2003). Overcoming local search through alliances and mobility. Management Science, 49 (6), 751-766. Sakakibara, M., & Branstetter, L. (2001). Do stronger patents induce more innovation? evidence from the 1988 Japanese patent law reforms. The RAND Journal of Economics, 32 (1), 77-100. Schankerman, M., & Scotchmer, S. (2001). Damages and injunctions in protecting intellectual property. The RAND Journal of Economics, 32 (1), 199-220. Schankerman, M., & Scotchmer, S. (2005). Still looking for lost profits: The case of horizontal competition. UC Berkeley: Department of Economics. (url: http://www.escholarship.org/uc/item/45r7776m) Shapiro, C. (2003). Antitrust limits to patent settlements. The RAND Journal of Economics, 34 (2), 391-411. Shapiro, C. (2016). Patent remedies. The American Economic Review, 106 (5), 198-202. Toh, P. K., & Kim, T. (2013). Why put all your eggs in one basket? a competition-based view of how technological uncertainty affects a firm's technological specialization. Organization Science, 24 (4), 1214-1236. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/107635 |
Available Versions of this Item
- Stronger Patent Regime, Innovation and Scientist Mobility. (deposited 10 May 2021 09:48) [Currently Displayed]