Patent Portfolio Management of Sequential Innovations
AbstractThis paper develops a model for understanding a firm's decisions regarding the maintenance (renewal) and patenting of sequential innovations and studies how these decisions are affected by the model's parameters, including maintenance fees and filing fees. The model demonstrates that the two prices exert negative effects on renewal and patenting, respectively (i.e. adverse own price effects). The model also offers a discriminating testable hypothesis, predicted on the cross-price effects, to identify complementarity or substitutability across sequential innovations. Our regression results show that the probability of patent renewal and maintenance fees are correlated negatively and that the patent propensity and application fees are correlated negatively. We also demonstrate that higher application fees are associated with lower probability of patent renewal, which corroborates the case of complementarity in sequential innovations.
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Bibliographic InfoPaper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 1005.
Date of creation: 2010
Date of revision:
Renewal; Patenting; Sequential innovations; Patent portfolio; Patent maintenance fees; Application filing fees;
Find related papers by JEL classification:
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- 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-2010-03-28 (All new papers)
- NEP-INO-2010-03-28 (Innovation)
- NEP-IPR-2010-03-28 (Intellectual Property Rights)
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