The patent system is one of the main instruments governments use to increase research and development incentives, while at the same time promoting follow-on innovation. However, there is growing concern among academic scholars and policy makers that patent rights are themselves becoming an impediment, rather than an incentive, to innovation.
Do patent rights impede follow-on innovation?
Alberto Galasso, Mark Schankerman, 14 May 2013
Cumulative innovation and market value: Evidence from patent citations
Sharon Belenzon, 3 July 2012
Knowledge spillovers play a critical role in economic growth. For example, x-ray-computed tomography technology was developed and patented by EMI, which was able to exploit it initially. However, it also inspired hundreds of subsequent inventions by firms such as Pfizer, Syntex, Picker, and General Electric.
Is the dragon learning to fly? An analysis of the Chinese patent explosion
Zhihong Yu , Markus Eberhardt, Christian Helmers, 27 September 2011
China’s economic success over the past three decades has been widely regarded as the result of its ability to produce manufactured goods at low cost, building on the availability of cheap labour and scale economies, while relying on existing (albeit in part advanced) technologies of production.
Another reason for the EU patent: Declining validation rates
Bas Straathof, Sander van Veldhuizen, 9 December 2010
In a couple of weeks the European Council will decide on the implementation of the EU patent. This is the last chance in the foreseeable future to overcome the deadlock in the negotiations on harmonising the patent law.
On the consequences of an EU patent for inventors and patent offices
Bruno van Pottelsberghe de la Potterie, Jérôme Danguy, 14 July 2010
From a “European Union” perspective, the European patent system is highly fragmented. Indeed, it is actually a sum of 27 national patent systems – once a patent is granted it must be upheld, managed, and enforced at the country level. In case of litigation, it is frequent for applicants to be involved in several parallel litigations, with different outcomes across countries.
Beyond the prohibitive cost of patent protection in Europe
Bruno van Pottelsberghe de la Potterie, Malwina Mejer, 10 April 2009
A well-known drawback of the European patent system is the prohibitive cost of protection. Beyond its legal complexity (Straus 1997, 2002), the fragmented patent system is costly.
Innovation and institutional ownership
John Van Reenen, Philippe Aghion, Luigi Zingales, 20 March 2009
Long before the current financial crisis, many authors such as Michael Porter (1992) were criticising the Anglo-American style of financial markets for causing excessive “short-termism”.
Improving efficiency in the 'market for innovation'
Alberto Galasso, Mark Schankerman, 29 November 2008
Patent rights can be a valuable incentive to innovation if effectively enforced. In practice, enforcement can be costly, uncertain, and create substantial delays in the use and transfer of technology.
Efficiency in the 'market for innovation'
Mark Schankerman, Alberto Galasso, 31 August 2008
Patents are generally considered as the dry preserve of academics and legal theorists, but are, however, a key element in the innovation process. The 'market for innovation' - the licensing and sale of patents - is, for example, one of the principal incentives for firms to invest in R&D.
Topics: Microeconomic regulation
Tags: CAFC, dispute settlement, innovation, litigation, patents
Policymakers and the R&D-patent relationship
Bruno van Pottelsberghe de la Potterie, Gaétan de Rassenfosse, 1 June 2008
Scholars studying innovation generally consider patents an imperfect indicator of research efforts. Mansfield (1986) and Griliches (1990), amongst others, underlined that not all inventions are patentable – and not all patentable inventions are patented.
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