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Institutionalized incentives for ingenuity--Patent value and the German Employees' Inventions Act

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  • Harhoff, Dietmar
  • Hoisl, Karin

Abstract

Germany is one of few countries in which the monetary compensation for inventors is not only determined by negotiations between employer and employee-inventor, but also by relatively precise legal provisions. In this paper, we describe the characteristics of the German Employees’ Inventions Act (GEIA) and discuss which incentives it creates. We rely on responses from a recent survey of 3,350 German inventors to test hypotheses regarding this institution. We conclude from our data that the law creates substantial monetary rewards for productive inventors. The qualitative responses from our survey confirm this view, but also point to a number of dysfunctional effects.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 36 (2007)
Issue (Month): 8 (October)
Pages: 1143-1162

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Handle: RePEc:eee:respol:v:36:y:2007:i:8:p:1143-1162

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References

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  1. Sanford J Grossman & Oliver D Hart, 2001. "An Analysis of the Principal-Agent Problem," Levine's Working Paper Archive 391749000000000339, David K. Levine.
  2. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1996. "How to Count Patents and Value Intellectual Property: Uses of Patent Renewal and Application Data," NBER Working Papers 5741, National Bureau of Economic Research, Inc.
  3. Narin, Francis & Breitzman, Anthony, 1995. "Inventive productivity," Research Policy, Elsevier, vol. 24(4), pages 507-519, July.
  4. Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Giuri, Paola & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin & LeBas, Christia, 2006. "Everything You Always Wanted to Know about Inventors (But Never Asked): Evidence from the PatVal-EU Survey," CEPR Discussion Papers 5752, C.E.P.R. Discussion Papers.
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Cited by:
  1. de Rassenfosse, Gaétan & van Pottelsberghe, Bruno, 2008. "A Policy Insight into the R&D-Patent Relationship," CEPR Discussion Papers 6716, C.E.P.R. Discussion Papers.
  2. William Latham & Christian Le Bas & Dmitry Volodin, 2011. "Value of invention, prolific inventor productivity and mobility: evidence from five countries, 1975-2002," Working Papers halshs-00654501, HAL.
  3. Hoisl, Karin, 2006. "Tracing Mobile Inventors – The Causality between Inventor Mobility and Inventor Productivity," Discussion Papers in Business Administration 1260, University of Munich, Munich School of Management.
  4. Toivanen, Otto & Väänänen, Lotta, 2010. "Returns to Inventors," CEPR Discussion Papers 7744, C.E.P.R. Discussion Papers.
  5. Sauermann, Henry & Roach, Michael, 2014. "Not all scientists pay to be scientists: PhDs’ preferences for publishing in industrial employment," Research Policy, Elsevier, vol. 43(1), pages 32-47.
  6. Claire Bonnard, 2011. "Les incitations à l'innovation dans le secteur privé," Post-Print halshs-00599700, HAL.
  7. Wagner, Stefan, 2006. "Make-or-Buy Decisions in Patent Related Services," Discussion Papers in Business Administration 1264, University of Munich, Munich School of Management.
  8. Paola Giuri & Myriam Mariani & Stefano Brusoni & Gustavo Crespi & Dominique Francoz & Alfonso Gambardella & Walter Garcia-Fontes & Aldo Geuna & Raul Gonzales & Dietmar Harhoff & Karin Hoisl & Christia, 2005. "Everything you Always Wanted to Know about Inventors (but Never Asked): Evidence from the PatVal-EU Survey," LEM Papers Series 2005/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  9. Michael Berlemann & Vera Jahn, 2014. "Relative Innovative Capacity of German Regions: Is East Germany Still Lagging Behind?," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 14(4), pages 42-50, 01.
  10. Katharina Frosch, 2009. "Do only new brooms sweep clean? A review on workforce age and innovation," MPIDR Working Papers WP-2009-005, Max Planck Institute for Demographic Research, Rostock, Germany.
  11. Onishi, Koichiro, 2013. "The effects of compensation plans for employee inventions on R&D productivity: New evidence from Japanese panel data," Research Policy, Elsevier, vol. 42(2), pages 367-378.
  12. Alfonso Gambardella, 2008. "Of Intellectual Property, Open Source and Innovation: Trends, and Some Opportunities for Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 57-83, March-Apr.
  13. Haeussler, Carolin & Sauermann, Henry, 2013. "Credit where credit is due? The impact of project contributions and social factors on authorship and inventorship," Research Policy, Elsevier, vol. 42(3), pages 688-703.

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