Harabi, Najib (1994): Appropriability of Technical Innovations: An Empirical Analysis. Published in: WWI-Arbeitspapiere, Reihe D No. Nr. 32 : pp. 1-18.
Download (1MB) | Preview
Appropriating the economic returns from technical innovations is very important for individual inventors and innovators, as well as for technical change in individual markets and for the whole economy. Since appropriability is difficult to measure directly, many researchers have been trying to investigate it indirectly and qualitatively by examining the effectiveness of various means of appropriability. The most important of these means are patents, secrecy and lead time and related advantages.
The purpose of this paper is to investigate empirically the effectiveness of different means of protecting the competitive advantages of technical innovations in Switzerland. The analysis is based on a survey conducted in 1988 among 358 Swiss experts, mainly R&D executives from selected firms. They represented 127 different lines of business, mainly in the manufacturing sector. The results can be summarized as follows:
1. For process innovations lead time is generally considered as the most effective means of appropnability. For product innovations superior sales and service efforts are viewed as the most effective means, followed by lead time.
2. For both product and process innovations patents are generally considered to be the least effective means of appropriability.
3. Patents as a means of appropnability in the Swiss context are only effective in a few industries: in chemicals, including drugs, and in some cases in the machinery and electrotechnics industries.
4. The ability of competitors to "invent around" patented innovations and the perception that patent documents require "disclosure of too much information" are considered as the most important constraints on the effectiveness of patents.
5. Inventors and innovators have manifold reasons for patenting their new ideas. Although patents may not provide adequate protection against imitation, they can contribute to enhancing the patent-holders' negotiating position towards third parties. This can be the case in negotiations either with other firms (for example about R&D-related agreements, fusions, take-overs etc) or with governmental agencies (for example concerning access to foreign markets).
|Item Type:||MPRA Paper|
|Original Title:||Appropriability of Technical Innovations: An Empirical Analysis|
|Keywords:||Technical innovation, appropriability, patents, Switzerland|
|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|
|Depositing User:||Najib Harabi|
|Date Deposited:||03. Nov 2010 16:06|
|Last Modified:||30. Dec 2015 10:53|
Arrow, K.J. (1962), "Economic Welfare and the Allocation of Resources for Invention", in: the Rate and Direction of Inventive Activity, ed. R.R. Nelson. Princeton: Princeton University Press.
Bundesamt fur Statistik (1985), Ailgemeine Systematik der Wirtschaftszweige. Bern.
Cohen, W.M., Levin, R.C. (1989), "Empirical Studies of Innovation and Market Structure", In: Handbook of Industrial Organization, Vol 2, ed. R. Schmalensee and R. Willig. Amsterdam: North Holland.
David, P.A. (1992), "Intellectual Property Institutions and The Panda's Thumb. Patents, Copyrights, and Trade Secrets in Economic Theory and History" Discussion Papers Series CEPR No. 287. Stanford University.
Dosi, G. (1988), "Sources, Procedures, and Microeconomic Effects of Innovation", Journal of Economic Literature, 26:1120-1171.
European Patent Office, IFO Institute for Economic Research (1993), Results and Methods of Economic Patent Research. Proceedings of the 1st EPO-IFO-Workshop on March 19/20, 1992 at the European Patent Office. Munich.
Grefermann, K., Rothlingshofer (1974), Patentwesen und technischer Fortschritt, Teil II: Patent- und Lizenzpolitik der Untemehmen. Gottingen: Verlag Otto Schwarz & Co.
Harabi, N. (1988), Einflussfaktoren von Forschung und Entwicklung (F&E) in der Schweizer Industrie. Schriffliche Befragung zu einer laufenden Untersuchung. Zurich: Handelswissenschaftliches Seminar der Universität ZUrich.
Harabi, N. (1991), "Einflussfaktoren von Forschung und Entwicklung in der Schweizer Industrie. Ergebnisse einer schriftlichen Expertenbefragung", Die Unternehmung - Schweizerische Zeitschrift für betriebswirtschaftliche Forschung und Praxis, 45:349-368.
Kitch, E. W. (1977), "The Nature and Function of the Patent System", Journal of Law and Economics, 20:265.
Levin, R.C. (1986), "A New Look at The Patent System", American Economic Association Papers and Proceedings, 76:199-202.
Levin, R.C., Klevorick A.K., Nelson, R.R., Winter, S.G. (1983), Questionnaire on Industrial Research and Development. Technical Report, Yale University.
Levin, R.C., Klevorick A.K., Nelson, R.R., Winter, S.G. (1987), "Appropriating the Returns from Industrial Research and Development", Brookings Papers on Economic Activity, S. 783-821
Mansfield, E. (1986), Patents and Innovation: An Empirical Study. Management Science, 32:173-181.
Ordover, J.A. (1991), "A Patent System for Both Diffusion and Exclusion", Journal of Economic Perspectives, 5: 43-60.
Schweizerischer Handels- und Industrieverein (1987), Forschung und Entwicklung in der Schweizerischen Pivatwirtschaft 1986. Bericht zur sechsten Erhebung des Vorortes in Zusammenarbeit mit dem Bundesamt ftr Statistik, ZUrich
Scherer, F.M., Ross, D. (1990), Industrial Market Structure and Economic Performance (third Edition). Boston: Houghton Mifflin
Tager, U. (1989), Entwicklungstendenzen im Patentverhalten deutscher Erfinder und Unternehmen. Ifo-Schnelldienst 23/89, 14-26.
Tager, U., von Witzleben, A. (Eds.) (1991), PATINNOVA '90. Strategies for the Protection of Innovation. Proceedings of the First European Congress of Industrial Property Rights 17 and Innovation. Dordrecht/Boston/London: Kluwer Academic Publishers and Deutscher Wirtschaftsdienst (Cologne).
Taylor, C.T. and Silberston, Z. A.(1973), The Economic Impact of the Patent System: A Study of the British Experience. Cambridge: Cambridge University Press.
Teece, J. D.(1986), "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy", Research Policy, 15:285-305.
Trajtenberg, M., Henderson, R. and Jaffe, A. (1992), "Quantifying Basicness and Appropriability of Innovations with the Aid of Patent Data: A Comparison of University and Corporate Research", Paper presented at the INSEE Seminar on Technological Appropriation, Paris, 9.- 10. Juni 1992