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Patents as Collateral

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

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 ZBW - German National Library of Economics in its journal EconStor Open Access Articles.

Volume (Year): (2010)
Issue (Month): ()
Pages: 1094-1104

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Handle: RePEc:zbw:espost:71062

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

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Citations

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Cited by:
  1. 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, Political Economy Research Institute, University of Massachusetts at Amherst wp296, Political Economy Research Institute, University of Massachusetts at Amherst.
  2. Gaétan de Rassenfosse, 2010. "How SMEs Exploit Their Intellectual Property Assets: Evidence from Survey Data," Melbourne Institute Working Paper Series wp2010n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Chatelain, Jean-Bernard & Ralf, Kirsten, 2012. "The failure of financial macroeconomics and what to do about it," MPRA Paper 38474, University Library of Munich, Germany.
  4. 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," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 13042, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  5. repec:hal:journl:halshs-00706777 is not listed on IDEAS
  6. repec:hal:wpaper:hal-00818474 is not listed on IDEAS
  7. 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.
  8. Roberto Steri & Lukas Schmid, 2013. "Dynamic Corporate Liquidiy," 2013 Meeting Papers, Society for Economic Dynamics 1266, Society for Economic Dynamics.

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