Patents, competition and firms’ innovation incentives
AbstractIn this paper we analyze how industrial property rights (IPRs), measured by patents granted, affect competition at the industry level, and their induced effects on firms’ innovation incentives. We use for that purpose a panel dataset of Spanish manufacturing firms for the period 1990-2006. Using indicators of fundamentals of competitive pressure and factor analysis techniques, we construct a new synthetic measure of competition. Our results indicate that although the use of IPRs (in terms of industry patenting intensity) reduces market competition, it may also encourage firms’ innovation incentives (in terms of firms’ R&D expenditures and the number of product innovations).
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Bibliographic InfoPaper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1211.
Length: 42 pages
Date of creation: Jul 2012
Date of revision:
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More information through EDIRC
IPRs; patents; competition; innovation;
Find related papers by JEL classification:
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-COM-2012-07-29 (Industrial Competition)
- NEP-CSE-2012-07-29 (Economics of Strategic Management)
- NEP-INO-2012-07-29 (Innovation)
- NEP-IPR-2012-07-29 (Intellectual Property Rights)
- NEP-KNM-2012-07-29 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2012-07-29 (Small Business Management)
- NEP-TID-2012-07-29 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005.
"Competition and Innovation: An Inverted-U Relationship,"
The Quarterly Journal of Economics,
MIT Press, vol. 120(2), pages 701-728, May.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers W02/04, Institute for Fiscal Studies.
- Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
- Christian Helmers & Mark Rogers, 2009. "Patents, Entrepreneurship and Performance," Global COE Hi-Stat Discussion Paper Series gd09-095, Institute of Economic Research, Hitotsubashi University.
- Paz Coscollá-Girona & Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2011. "Competitive pressure determinants and innovation at the firm level," Working Papers. Serie EC 2011-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Christine Greenhalgh & Mark Rogers, 2007.
"The Value of Intellectual Property Rights to Firms,"
06-036, Stanford Institute for Economic Policy Research.
- Christine Greenhalgh & Mark Rogers, 2007. "The Value of Intellectual Property Rights to Firms," Economics Series Working Papers 319, University of Oxford, Department of Economics.
- Wörter, Martin & Rammer, Christian & Arvanitis, Spyros, 2010.
"Innovation, competition and incentives for R&D,"
ZEW Discussion Papers
10-039, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ganslandt, Mattias, 2008. "Intellectual Property Rights and Competition Policy," Working Paper Series 726, Research Institute of Industrial Economics.
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