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on Intellectual Property Rights |
| By: | Birgit Aschhoff; Georg Licht; Paula Schliessler |
| Abstract: | Europe’s innovation potential is currently dominated by well-established large companies. In most member countries the bulk of R&D expenditures is spend by large companies. Following OECD data, SME’s share in total R&D spending amount to 8% in Germany or Japan, around 15% in US, France, Korea or Italy, about 20% in Sweden, Finland or Switzerland, about 30% in Netherlands, Austria or Poland, and about 50% in Poland, Ireland, Slovakia or Greece. First of all, these figures point to a considerable heterogeneity with regard to the importance of SMEs in national R&D activities. However, young companies are said to be the driving force behind radical innovation which will be a source of employment and growth in future. In addition, the weakness of Europe is not only the small number of hightech startups but more specifically the number of hightech startups which accomplish continuing, rapid growth. However, there might be significant technology specific heterogeneity with regard to the contribution of SMEs and young firms to innovation. The central question of the paper is whether SMEs and young firms might be agents with a special contribution to new growth path in Europe. We took new renewable energy technologies as an example at test whether the contribution of SMEs and young firms is larger in this technology area compared to invention as measured by patenting. In order to focus on the most valuable patents we use patent applications at the European Patent Office which were also applied for patent production at the USPTO and the Japanese Patent Office (“triadic patent applications”). The analysis proceed in two steps: The paper looks first at trends in international patenting and compares triadic patent application in the field of energy with all triadic patent application by country of inventors. The idea is to highlight the role of EU and its member states in invention activity in a technology-field which is of special relevance for a new, sustainable growth path. In the second step we look at the contribution for SMEs and young firms to such a new growth path by a detail analyses of triadic patent application by German companies as the SMEs share to R&D is the smallest compared to all other EU member states as well as compared to OECD member states (except Japan). The focus on Germany is motivated for two reasons - to ease the analysis and to focus on the most extreme case of the firm-size R&D distribution which is observed in EU and OECD member states. The study employs the WIPO “Green Inventory” classification to identify energy-related patents via the international patent classification used by all patent offices to assign patents by technology and potential fields of application. This classification comprise as main technology classes alternative energy production, transportation, energy storage, waste management, agriculture/forestry, regulatory and design aspects, and nuclear power generation. The number of green inventory patents increased from 1991 to 2007 by a factor of 2.5 to 12.500 patent applications. The majority of this increase is observable in renewable energy product, storage of energy, design and management of energy systems, and waste management. Patents related to nuclear power account for 4% of green inventory patents and this share declined even more to 1% in 2007. Surprisingly, the increase of green inventory patent applications at the EPO more or less equals the increase in overall patent applications at the EPO. Hence, the share of green inventory patents in total patent application at EPO was constant and fluctuating always between 8-10% with not visible trend. Similarly, albeit the increase in the number of triadic patents is less impressive (only by a factor of 1.4) the structural features are the same. Overall, the importance of green patent activities does not greatly vary between countries or regions. In 2007, the share of green patent applications in all patent applications at the EPO lies between 7% and 12%. Interestingly, the new member states and southern Europe are at the upper end of the range (12% and 10%, respectively) - besides Japan (11%) and the US (10%). Green patents are slightly less important for Northern Europe and China (both 7%). Focusing on more valuable patent application (“triadic patent application”), green technologies become more important in Germany, Korea and China and lose importance in Southern Europe. The second step linked sustainable growth to the “entrepreneurial” economy by examining to which degree small and young firms are driving sustainable patenting. We find SMEs to be responsible for about 15% of all patent applications. This is the same for the WIPO Green Inventory classified “green” patents. Around half of patent applications of SMEs are made by young firms. About one half of all patent applications by SMEs are filed by micro firms. When narrowing down the analysis to triadic patents, we find the contribution of SMEs to decrease to about 9% of all patent applications which is probably caused by the larger costs of applying and maintaining triadic patents than EPO patents. The contribution to green patenting is even lower for triadic patents with only 6% of all green patents coming from SMEs. In the third step of the analysis, based on the link of German firm data to patent applications at the European Patent Office, we analyzed at the firm level whether small and young firms are more or less likely to file sustainable patents than other firms. The results show that large firms are significantly more likely to file both patents in general and green patents. We do find that, for micro, small and medium size firms, the negative effect on patenting compared to the reference category of a large firm is less strong for the younger firms. This effect exists both for the generation of patents in general and the generation of green patents. Therefore there does not seem to be a particular advantage for small or young firms in producing sustainable, green patents. Even more, SMEs and young firms seem to face larger obstacles to start inventing in green energy technologies than in other technology fields. In any case SMEs and young firms will probably not an important driver of new technologies like in some other fields of technology. Of course we have to admit that our same only covers international patent applications for the priority year 2007 or earlier. Hence, things might have changed in the meantime due to e.g. extended government support for innovation in green energy fields. However, this question can only be examined with future editions of the PATSTAT data which fully covers more recent years. In addition, we cannot rule out the SMEs and/or young firms are especially important for patents which are radical driver of technological change. To address this question several measurement issues need to be solved and/or existing measurement approaches need verification. However, this is beyond the limits of our study. What might be the contribution to the central questions of the wwwforEurope project? First of all, young and small firms might not able to drive the technology development towards a more sophisticated use of energy resources and renewable energies. Like in most other fields of technology the direction of technical change is determined by established large firms. Hence, under the current framework of innovation and industrial policies, the development of the “more entrepreneurial economy” will probably not form forerunners on the ways towards a new growth path. Secondly, private sector’s production of invention activities became not stronger directed towards technologies which aim at production, storage, distribution, and management of new energy technologies compared to other fields of technology. Given the societal need for new energy technologies the paper speaks in favor of government regulation, invention and incentives to stimulate research, development, and implementation new energy technologies. However, we do not find arguments that such stimuli should favor SMEs or young firms. |
| Keywords: | Green patents, sustainable patenting, SMEs, young firms |
| JEL: | O31 M13 C81 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:11:d:0:i:47&r=ipr |
| By: | Kresimir Zigic; Jiri Strelicky; Michael Kunin |
| Abstract: | Two software developers, each offering a product variety of different (exogenously given) quality, compete in prices for heterogeneous users who choose from purchasing a legal version, using an illegal copy, and not using a product at all. Using an illegal version violates intellectual property rights (IPR) and is thus punishable when disclosed. If a developer considers the level of piracy as high, he can introduce protection for his product in the form of restricting support and other services to illegal users. We study the positive and normative implications of the interaction between a regulator's IPR protection and the IPR protection that producers themselves may undertake to protect their IPR against the end users' software piracy. In particular, we aim to establish when the two forms of IPR protections (public and private) act as complements and when as substitutes to each other. Finally, we explore the situations in which there is (or is not) a conflict of interest between the regulator and the developers in this respect. |
| Keywords: | vertically differentiated duopoly; software piracy; Bertrand competition; private and public intellectual property rights protection; |
| JEL: | D43 L11 L21 O25 O34 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp490&r=ipr |
| By: | Antonio R. Andrés (Eastern Mediterranean University, Department of Economics); Simplice A. Asongu (African Governance and Development Institute); Voxi Amavilah (Glendale College) |
| Abstract: | Using Kauffman, Kraay, and Mastruzzi governance indicators, this article analyzes the impact of formal institutions on the knowledge economy- by assessing how the enforcement of Intellectual Property Rights (IPRs) through good governance mechanisms affects the knowledge economy. The article also employs the World Bank’s four components of the knowledge economy index characteristic of its knowledge for development (K4D) framework. We estimate panel data models for 22 Middle East & North African and Sub-Sahara African countries over the period 1996-2010. The results show that for this group of countries the enforcement of IPR laws (treaties), although necessary, is not a sufficient condition for a knowledge economy. The results also suggest that other factors are more likely to determine the knowledge economies of these nations. Overall these findings have important implications for both policy and further research. |
| Keywords: | Formal institutions; Knowledge economy; Panel data; Principal component analysis (PCA) |
| JEL: | O10 O34 O38 P00 P48 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:adv:wpaper:201305&r=ipr |
| By: | Akcigit, Ufuk (University of Pennsylvania and NBER); Kerr, William R. (Harvard University and NBER) |
| Abstract: | We study how exploration versus exploitation innovations impact economic growth through a tractable endogenous growth framework that contains multiple innovation sizes, multi-product firms, and entry/exit. Firms invest in exploration R&D to acquire new product lines and exploitation R&D to improve their existing product lines. We model and show empirically that exploration R&D does not scale as strongly with firm size as exploitation R&D. The resulting framework conforms to many regularities regarding innovation and growth differences across the firm size distribution. We also incorporate patent citations into our theoretical framework. The framework generates a simple test using patent citations that indicates that entrants and small firms have relatively higher growth spillover effects. |
| Keywords: | endogenous growth; innovation; exploration; exploitation; research and development; patents; citations; scientists; entrepreneurs |
| JEL: | L16 O31 O33 O41 |
| Date: | 2013–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_028&r=ipr |
| By: | Bertrand Chopard; Thomas Cortade; Eric Langlais |
| Abstract: | This paper provides an analysis of two damage rules (Lost Pro fit versus Unjust Enrichment) introduced in the French Code de la Propriété Intellectuelle in 2007 (Loi du 27 Octobre 2007, Art. L. 615-7). We use a simple sequential game where both the decisions to infringe and to enforce the patent, as well as the decisions to accomodate, settle or litigate the case, and the outputs decisions (Cournot competition) are endogenous. We characterize the equilibria associated with each rule, and compare their properties. We show that: 1/ the Unjust Enrichment rule provides Patentees with higher damages compensation than the Lost Pro fit one; however, 2/ Lost Profi t induces more deterrence of infringement, and is associated with less trials than Unjust Enrichment; 3/ Unjust Enrichment may deter the Patentee to enforce his right; 4/ when there is a positive probability that the case settles, Patentee's expected utility is higher under Lost Profi t than under Unjust Enrichment. |
| Keywords: | lost profi t rule, unjust enrichment rule, intellectual property rights, patent litigations, pretrial negotiations |
| JEL: | L1 L4 D8 K2 K4 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2013-37&r=ipr |
| By: | Rajah RASIAH (Faculty of Economics and Administration Building, University of Malaya) |
| Abstract: | Using a stylized framework of technological capability development through pursuing Keynesian-Kaleckian style demand management strategies, this paper discusses initiatives that poorer member governments should take to stimulate technological upgrading of firms at the bottom with a focus on innovation, as well as, discussed the governance framework of intellectual property rights (IPRs) in ASEAN. Typologies of taxonomies and trajectories were used to evolve a policy framework to coordinate the relationship between macroinstitutions, meso-organizations and micro-agents (firms) for ASEAN members upgrade to transform from developing nations to join Singapore as developed nations. Recognizing the varying capacities of ASEAN members, the paper recommends that a common platform of IPRs be developed with the more developed members assisting the LDC members to quicken the development of a technologically more egalitarian region. |
| Keywords: | Innovation, intellectual Property Rights, ASEAN, Institutions, R&D |
| JEL: | O31 O32 O38 O43 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2013-28&r=ipr |
| By: | Marit E. Klemetsen; Brita Bye; Arvid Raknerud (Statistics Norway) |
| Abstract: | This paper provides new evidence on the role of non-market based (“command-and-control”) regulations in relation to innovations in environmental technologies. While pricing is generally considered the first-best policy instrument, non-market regulations, such as technology standards and non-tradable emission quotas, are common when a regulator faces multiple emission types and targets, heterogeneous recipients, or uncertainty with regard to marginal damages. Knowing whether these regulations spur or hinder innovation is of great importance to environmental policy. Using a unique Norwegian panel data set that includes information about the type and number of patent applications, technology standards, non-tradable emission quotas, and a large number of control variables for almost all large and medium-sized Norwegian incorporated firms, we are able to conduct a comprehensive study of the effect of non-market based regulations on environmental patenting. Unlike previous studies that are typically conducted at the industry level, we are able to take firm heterogeneiry into account, and thereby reduce the common problem of omitted variable bias in our analysis. We empirically identify strong and significant effects on innovations from implicit regulatory costs associated with the threat that a firm will be sanctioned for violating an emission permit. |
| Keywords: | Command-and-control regulations; Technology standards; Non-tradable emission quotas; Patents; Innovation; Environmental technologies; Random effects ordered probit model. |
| JEL: | C23 O34 Q52 Q53 Q55 Q58 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:754&r=ipr |
| By: | Fleisher, Belton M. (Ohio State University); McGuire, William H. (University of Washington Tacoma); Smith, Adam Nicholas (Ohio State University); Zhou, Mi (Agricultural Bank of China) |
| Abstract: | Intangible knowledge capital (IKC) – technology produced by workers but not embodied in them – can offset the "middle income trap" as China exhausts the benefits of international technology transfer. IKC is productivity-enhancing among Chinese enterprises – more so in domestically owned than in foreign invested enterprises. Consistent with other research, we find that China's IKC generates patents in China, but fewer than in major industrialized economies. Among domestically owned enterprises, IKC growth has flowed more toward higher-tech, export-oriented industries, while among foreign invested enterprises, it has been oriented more toward domestic sales. |
| Keywords: | intellectual capital, technology, economic growth, intellectual property, Asia, China |
| JEL: | O31 O33 O34 O43 P33 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7798&r=ipr |
| By: | Samuli Leppälä |
| Abstract: | Following the development of knowledge economies, there has been a rapid expansion of economic analysis of knowledge, both in the context of technological knowledge in particular and the decision theory in general. This paper surveys this literature by identifying the main themes and contributions and outlines the future prospects of the discipline. The wide scope of knowledge related questions in terms of applicability and alternative approaches has led to the fragmentation of research. Nevertheless, one can identify a continuing tradition which analyses various aspects of the generation, dissemination and use of knowledge in the economy. |
| Keywords: | knowledge, information, belief, uncertainty, innovation, intellectual property rights, scientific research, technological change |
| JEL: | D80 O30 I20 B00 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:hec:heccee:2012-5&r=ipr |
| By: | Fabian Irek,; Jan Jaap Hazenberg; Willem van der Scheer; Mariela Stefanova (LSF) |
| Abstract: | We investigate the effect of the fund provider s brand on mutual fund flows by using a unique data set that represents a direct assessment of the brand image of European fund providers. A superior brand image increases the sensitivity of flows to past performance, while an inferior brand decreases it. Funds with a superior brand are not protected against outflows when there is underperformance. A superior brand, coupled with high past performance, generates persistent inflows and performance persistence so investors will benefit when a superior brand fund with high past performance is chosen. |
| JEL: | G11 G23 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:crf:wpaper:13-8&r=ipr |
| By: | Francesca Checchinato (Dept. of Management, Università Ca' Foscari Venice); Lala Hu (Dept. of Management, Università Ca' Foscari Venice); Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Tiziano Vescovi (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | Chinese latecomer firms adopt internationalization strategies in order to gain the necessary resources and competences to compete in the local and global markets. In this process, different sectors are involved: not only in the electronic one (e.g. Haier and Huawei represent two successful cases), but also in other industries Chinese firms have achieved high competitiveness in the global scenario. In this paper, we analyze the case of Goodbaby, a Chinese baby strollersÕ manufacturer. This company has implemented its internationalization activities since the early 1990s, and it is now one of the main stroller manufacturers in the world and the leading brand in China. In order to analyze the brand awareness and purchase behavior in the local market, the empirical design used in this study encompasses the combination of the competitive analysis of strollersÕ brands in the Chinese market and a questionnaire to Chinese consumers. Our research shows that GoodbabyÕs history reflects the internationalization process of multinationals from emerging markets (EM-MNEs), while confirming GoodbabyÕs high competitiveness in a sector that was traditionally dominated by foreign brands. Some managerial implications will be discussed. |
| Keywords: | China, global, glocal, internationalization, Goodbaby |
| JEL: | M16 M30 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:61&r=ipr |