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Does Patenting Increase the Private Inventives to Innovate ? A Microeconometric Analysis

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  • Emmanuel DUGUET
  • Claire LELARGE

Abstract

The role played by the patent system as an innovation incentive is at the center of an important current debate. The relevance of the patent system for the development of high-tech industries has been put into question. This paper adds to the prior evidence by looking at the relationship between patent rights and innovation performance in French manufacturing over the period 1997-1999. In order to sort problems of endogeneity out, we use a structural model of research, innovation and patenting. In particular, since the type of innovation (product, process) may drive appropriability conditions, the model takes this dimension into account. The empirical results are clear-cut : patents promote significantly product innovations but not process innovations. Similarly, the patent premium increases with the value of product innovations but is not directly affected by the value of process innovations.

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Bibliographic Info

Article provided by ENSAE in its journal Annals Of Economics and Statistics.

Volume (Year): (2012)
Issue (Month): 107-108 ()
Pages: 8

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Handle: RePEc:adr:anecst:y:2012:i:107-108:p:8

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  1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications, Université Panthéon-Sorbonne (Paris 1) 98.15, Université Panthéon-Sorbonne (Paris 1).
  2. Wesley M Cohen & Richard R Nelson & John P Walsh, 2003. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not)," Levine's Working Paper Archive 618897000000000624, David K. Levine.
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  8. Vassilis A. Hajivassiliou & Daniel L. McFadden & Paul Ruud, 1993. "Simulation of Multivariate Normal Rectangle Probabilities and their Derivatives: Theoretical and Computational Results," Working Papers, Yale University _024, Yale University.
  9. Monjon, Stephanie & Waelbroeck, Patrick, 2003. "Assessing spillovers from universities to firms: evidence from French firm-level data," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 21(9), pages 1255-1270, November.
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  13. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, American Economic Association, vol. 95(4), pages 1214-1236, September.
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Cited by:
  1. Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers, CIRANO 2010s-15, CIRANO.
  2. Nour, Samia Satti Osman Mohamed, 2013. "The economic importance and impacts of intellectual property rights (IPRs) in Sudan," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. ISOGAWA Daiya & NISHIKAWA Kohei & OHASHI Hiroshi, 2012. "New-to-Market Product Innovation and Firm Performance: Evidence from a firm-level innovation survey in Japan," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12077, Research Institute of Economy, Trade and Industry (RIETI).
  4. Olfa KAMMOUN & Mohieddine RAHMOUNI, 2013. "Intellectual Property Rights, Appropriation Instruments and Innovation Activities: Evidence from Tunisian Firms," Cahiers du GREThA, Groupe de Recherche en Economie Théorique et Appliquée 2013-01, Groupe de Recherche en Economie Théorique et Appliquée.

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