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Patents as collateral

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Author Info

  • Amable, Bruno
  • Chatelain, Jean-Bernard
  • Ralf, Kirsten

Abstract

This paper studies how the assignment of patents as collateral determines the savings of firms and magnifies the effect of innovative rents on investment in research and development (R&D). We analyse the behaviour of innovative firms that face random and lumpy investment opportunities in R&D. High growth rates of innovations, possibly higher than the real rate of interest, may be achieved despite financial constraints. There is an optimal level of publicly funded policy by the patent and trademark office that minimizes the legal uncertainty surrounding patents as collateral and maximizes the growth rate of innovations.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 34 (2010)
Issue (Month): 6 (June)
Pages: 1092-1104

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Handle: RePEc:eee:dyncon:v:34:y:2010:i:6:p:1092-1104

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Collateral Patents Research and development Credit rationing Growth Innovation;

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References

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Citations

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Cited by:
  1. Karim Azizi & Nicolas Canry & Jean-Bernard Chatelain & Bruno Tinel, 2013. "Government Solvency, Austerity and Fiscal Consolidation in the OECD: A Keynesian Appraisal of Transversality and No Ponzi Game Conditions," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00825446, HAL.
  2. Jean-Bernard Chatelain & Kirsten Ralf, 2012. "The Failure of Financial Macroeconomics and What to Do About it," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00706777, HAL.
  3. Gaétan Rassenfosse, 2012. "How SMEs exploit their intellectual property assets: evidence from survey data," Small Business Economics, Springer, vol. 39(2), pages 437-452, September.
  4. Roberto Steri & Lukas Schmid, 2013. "Dynamic Corporate Liquidiy," 2013 Meeting Papers 1266, Society for Economic Dynamics.
  5. repec:hal:journl:halshs-00706777 is not listed on IDEAS
  6. Karim Azizi & Nicolas Canry & Jean-Bernard Chatelain & Bruno Tinel, 2012. "Are No-Ponzi Game and Transversality Conditions Relevant for Public Debt? A Keynesian Appraisal," Working Papers wp296, Political Economy Research Institute, University of Massachusetts at Amherst.
  7. repec:hal:cesptp:hal-00818474 is not listed on IDEAS
  8. Timo Fischer & Gaétan de Rassenfosse, 2011. "Debt Financing of High-growth Startups," DRUID Working Papers 11-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  9. repec:hal:wpaper:hal-00818474 is not listed on IDEAS

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