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The Determinants of Patent Applications Outcomes - Does Experience Matter?

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  • Schneider, Cédric

Abstract

The aim of this paper is to study the determinants of the outcomes of patent applications (withdrawal, refusal or grant). The application process at the European Patent Office is modelled in three stages, using a Trivariate Probit model with double selectivity correction in order to test whether the applicants ?patenting history has an effect on the outcome of the current application. I investigate the behavior of the applicant after the patent office has established the "state of the art", a precondition to an invention being patentable. The main results are (i) firms with large patents portfolios act following a "trial and error" strategy, by applying for large numbers of patents and thereafter waiting for the patent office?s final decision when the expected probability of grant is high, (ii) the technological importance of a patent is a crucial determinant of a successful application grant, (iii) a withdrawal is to be regarded as an expected refusal, since applicants tend to withdraw their applications when there is evidence that the inventions cannot be considered to be novel or to involve an inventive step.

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File URL: http://mpra.ub.uni-muenchen.de/8625/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3359.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:3359

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Keywords: European Patent Office; Intellectual Property Rights;

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References

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  1. Bruno Van Pottelsberghe & Dominique Guellec, 2000. "Applications grants and the value of patents," ULB Institutional Repository 2013/6229, ULB -- Universite Libre de Bruxelles.
  2. Bronwyn H. Hall, Albert N. Link and John T. Scott., 2000. "Universities as Research Partners," Economics Working Papers E00-276, University of California at Berkeley.
  3. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
  4. Vopel, Katrin & Scherer, Frederic M. & Narin, Francis & Harhoff, Dietmar, 1997. "Citation Frequency and the Value of Patented Innovation," ZEW Discussion Papers 97-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Harhoff, Dietmar & Reitzig, Markus, 2004. "Determinants of opposition against EPO patent grants--the case of biotechnology and pharmaceuticals," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 443-480, April.
  6. Harhoff, Dietmar & Wagner, Stefan, 2005. "Modelling the duration of patent examination at the European Patent Office," CEPR Discussion Papers 5283, C.E.P.R. Discussion Papers.
  7. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, 04.
  8. van Dijk, Theon & Duysters, Geert, 1998. "Passing the European Patent Office: evidence from the data-processing industry," Research Policy, Elsevier, vol. 27(9), pages 937-946, December.
  9. Morten Bennedsen & Kasper M. Nielsen & Francisco Pérez-González & Daniel Wolfenzon, 2006. "Inside the Family Firm: The Role of Families in Succession Decisions and Performance," NBER Working Papers 12356, National Bureau of Economic Research, Inc.
  10. Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September.
  11. Colin Webb & Hélène Dernis & Dietmar Harhoff & Karin Hoisl, 2005. "Analysing European and International Patent Citations: A Set of EPO Patent Database Building Blocks," OECD Science, Technology and Industry Working Papers 2005/9, OECD Publishing.
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Citations

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Cited by:
  1. Nicolas van Zeebroeck & Bruno van Pottelsberghe de la Potterie, 2011. "Filing strategies and patent value," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 539-561, February.
  2. Nicolas van Zeebroeck, 2007. "The puzzle of patent value indicators," Working Papers CEB 07-023.RS, ULB -- Universite Libre de Bruxelles.
  3. Nicolas van Zeebroeck, 2007. "Patents only live twice: a patent survival analysis in Europe," Working Papers CEB 07-028.RS, ULB -- Universite Libre de Bruxelles.
  4. Schettino, Francesco & Sterlacchini, Alessandro & Venturini, Francesco, 2008. "Inventive Productivity and Patent Quality: Evidence from Italian Inventors," MPRA Paper 7765, University Library of Munich, Germany.
  5. Juan Alcacer & Michelle Gittelman & Bhaven Sampat, 2008. "Applicant and Examiner Citations in US Patents: An Overview and Analysis," Harvard Business School Working Papers 09-016, Harvard Business School.
  6. Cédric Schneider, 2009. "External knowledge sourcing: science, market and the value of patented inventions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 551-560.
  7. Alcácer, Juan & Gittelman, Michelle & Sampat, Bhaven, 2009. "Applicant and examiner citations in U.S. patents: An overview and analysis," Research Policy, Elsevier, vol. 38(2), pages 415-427, March.
  8. Alberto Galasso & Mark Schankerman, 2013. "Patents and cumulative innovation: causal evidence from the courts," LSE Research Online Documents on Economics 51539, London School of Economics and Political Science, LSE Library.
  9. Alberto Galasso & Mark Schankerman, 2013. "Patents and Cumulative Innovation: Causal Evidence from the Courts," CEP Discussion Papers dp1205, Centre for Economic Performance, LSE.

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