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Institutionalized Incentives for Ingenuity – Patent Value and the German Employees’ Inventions Act

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Author Info
Harhoff, Dietmar
Hoisl, Karin

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Abstract

Germany is one of few countries in which the monetary compensation for inventors is not only determined by negotiations between employer and employee-inventor, but also by relatively precise legal provisions. In this paper, we describe the characteristics of the German Employees’ Inventions Act (GEIA) and discuss which incentives it creates. We rely on responses from a recent survey of 3,350 German inventors to test hypotheses regarding this institution. We conclude from our data that the law creates substantial monetary rewards for productive inventors. The qualitative responses from our survey confirm this view, but also point to a number of dysfunctional effects.

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Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 1262.

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Date of creation: 2006
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Handle: RePEc:lmu:msmdpa:1262

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Related research
Keywords: Employee-Inventor; Inventor Compensation; Patent Value; Productivity;

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Find related papers by JEL classification:
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management

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References listed on IDEAS
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.:
  1. Narin, Francis & Breitzman, Anthony, 1995. "Inventive productivity," Research Policy, Elsevier, vol. 24(4), pages 507-519, July. [Downloadable!] (restricted)
  2. Grossman, Sanford J & Hart, Oliver D, 1983. "An Analysis of the Principal-Agent Problem," Econometrica, Econometric Society, vol. 51(1), pages 7-45, January. [Downloadable!] (restricted)
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  3. Manuel Trajtenberg, 1990. "A Penny for Your Quotes: Patent Citations and the Value of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 172-187, Spring. [Downloadable!] (restricted)
  4. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1996. "How to Count Patents and Value Intellectual Property: Uses of Patent Renewal and Application Data," NBER Working Papers 5741, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Harhoff, Dietmar & Hoisl, Karin, 2006. "Everything you Always Wanted to Know About Inventors (But Never Asked): Evidence from the PatVal-EU Survey," Discussion Papers in Business Administration 1261, University of Munich, Munich School of Management. [Downloadable!]
    Other versions:
  2. Hoisl, Karin, 2006. "Tracing Mobile Inventors – The Causality between Inventor Mobility and Inventor Productivity," Discussion Papers in Business Administration 1260, University of Munich, Munich School of Management. [Downloadable!]
    Other versions:
  3. Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2008. "A Policy Insight into the R&D-Patent Relationship," ECARES Working Papers 2008_007, Université Libre de Bruxelles, Ecares. [Downloadable!]
    Other versions:
  4. Wagner, Stefan, 2006. "Make-or-Buy Decisions in Patent Related Services," Discussion Papers in Business Administration 1264, University of Munich, Munich School of Management. [Downloadable!]
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