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German employee inventors' compensation records: A window into the returns to patented inventions

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  • Giummo, Jesse
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    Abstract

    This paper uses a novel data source, namely German employee inventors' compensation records compiled in compliance with the German Employee Invention Act of 1957 to estimate the returns to patented inventions. In contrast to patent value estimates obtained from surveys and renewals, these records primarily provide a measure of the value of the use of the invention and not the value of patent protection. While indicators of patent value explain much of the variation in these patent value estimates, the values are only weakly correlated with the estimated renewal value of the patents. The distribution of patent value from these records is highly skew, with the vast majority of the returns earned by a select set of high valued patents, consistent with finding for other measures of patent value. The value estimates however are considerably lower than recent survey estimates with most of the patents having little or no realized value, suggesting that the returns appropriated through the use of an invention may represent only a fraction of the value of a patented invention.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 39 (2010)
    Issue (Month): 7 (September)
    Pages: 969-984

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    Handle: RePEc:eee:respol:v:39:y:2010:i:7:p:969-984

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

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    Keywords: Patents Inventors Intellectual property rights;

    References

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    Cited by:
    1. Oliver Baumann & Nils Stieglitz, 2011. "Motivating Organizational Search," DRUID Working Papers 11-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. repec:jso:coejbm:v:1:y:2013:i:1:p:28-49 is not listed on IDEAS
    3. Cheng-Feng Cheng, 2012. "Evaluate the Effectiveness of Manager Compensation," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 25-44, June.

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