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Which firms use trademarks? Firm-level evidence from Germany on the role of distance, product quality and innovation

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  • Dirk Crass

Abstract

Trademarking firms are more productive, generate higher profits, and have a better survival rate. Trademarking firms are in one word more successful, which might motivate non-trademarking firms to adopt a trademark strategy. But this does not seem to be the case. The proportion of trademarking firms in the German business sector amounts to just 18%. This figure is quite low, given that nearly each firm has reputation to protect. But why does the vast majority of firms not have registered trademarks? Using a representative sample of German firms, the present paper links certain firm characteristics to a firm’s propensity to register trademarks. The empirical results point to circumstances under which trademarks are significantly more often used: this is the case where a large distance between a firm and its customers exists, a firm’s product quality is difficult to assess, a firm’s products are characterised by a limited (but not strong) substitutability, and where a firm is engaged in R&D and introduces innovative products. Trademarks are considerably less frequently used if none of this is the case.

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  • Dirk Crass, 2020. "Which firms use trademarks? Firm-level evidence from Germany on the role of distance, product quality and innovation," Industry and Innovation, Taylor & Francis Journals, vol. 27(7), pages 730-755, August.
    • Handle: RePEc:taf:indinn:v:27:y:2020:i:7:p:730-755
    DOI: 10.1080/13662716.2020.1737511
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    Cited by:

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    4. Nathan, Max & Rosso, Anna, 2022. "Innovative events: product launches, innovation and firm performance," Research Policy, Elsevier, vol. 51(1).

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    More about this item

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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