Patent disclosure and R&D competition in pharmaceuticals
AbstractThe prominent role played by patents within the pharmaceutical domain is unquestionable. In this paper, we focus on a relatively neglected implication of patents: the effect of patent-induced information disclosure on the dynamics of R&D and market competition. The study builds upon the combination of two large datasets, linking the information about patents to firm-level data on R&D projects and their outcome. Two case studies in the fields of anti-inflammatory compounds and cancer research complement our analysis. We argue that patent disclosure induces R&D competition and shapes firms' technological trajectories. In fact, we show that under conditions of uncertainty, patent disclosure can contribute to generate knowledge spillovers, promoting multiple parallel research efforts on plausible targets and stimulating private investment and competition.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 18 (2009)
Issue (Month): 5 ()
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Other versions of this item:
- Laura Magazzini & Fabio Pammolli & Massimo Riccaboni & Maria Alessandra Rossi, 2009. "Patent Disclosure and R&D Competition in Pharmaceuticals," ROCK Working Papers 053, Department of Computer and Management Sciences, University of Trento, Italy, revised 11 Jun 2009.
- Laura Magazzini & Fabio Pammolli & Massimo Riccaboni & Maria Alessandra Rossi, 2009. "Patent Disclosure and R&D Competition in Pharmaceuticals," DISA Working Papers 0902, Department of Computer and Management Sciences, University of Trento, Italy, revised 11 Jun 2009.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
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