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Patents in Theory and Practice: Empirical Results from Switzerland

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Author Info
Harabi, Najib

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Abstract

The purpose of this paper is to investigate empirically the effectiveness of alternative mechanisms of protecting the competitive advantages of new or improved products and processes. The analysis is based on I survey I conducted among 358 firms in 127 different (four-digit) industries in Switzerland. The main results can be summarized as follows: 1) For process innovations lead time, and for product innovations, superior sales and service efforts are viewed as the most effective means of appropriation. 2)For both product and process innovations, patents are the least effective means of appropriation. In general, patents are viewed by R&D managers as an effective means of protecting the competitive advantages of new technolgy in the chemical, including the drug industries, in the synthetics and in some cases of the machinery and metal processing industries. In all other industries surveyed they are considered less affective. 3)Finally, the ability of competitors to "invent around" is seen as the most important constraint on the effectiveness of patents.

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File URL: http://mpra.ub.uni-muenchen.de/9606/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9606.

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Date of creation: Nov 1996
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Handle: RePEc:pra:mprapa:9606

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Related research
Keywords: patents appropriabilty intellectual property rights Switzerland innovations Swiss firms Swiss industry

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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  1. Scherer, F. M., 1983. "The propensity to patent," International Journal of Industrial Organization, Elsevier, vol. 1(1), pages 107-128, March. [Downloadable!] (restricted)
  2. Conrad, Cecilia A., 1983. "The advantage of being first and competition between firms," International Journal of Industrial Organization, Elsevier, vol. 1(4), pages 353-364, December. [Downloadable!] (restricted)
  3. Friedman, David D & Landes, William M & Posner, Richard A, 1991. "Some Economics of Trade Secret Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 61-72, Winter. [Downloadable!] (restricted)
  4. Glazer, Amihai, 1985. "The Advantages of Being First," American Economic Review, American Economic Association, vol. 75(3), pages 473-80, June. [Downloadable!] (restricted)
  5. Harabi, Najib, 1995. "Appropriability of technical innovations an empirical analysis," Research Policy, Elsevier, vol. 24(6), pages 981-992, November. [Downloadable!] (restricted)
    Other versions:
  6. Levin, Richard C, 1986. "A New Look at the Patent System," American Economic Review, American Economic Association, vol. 76(2), pages 199-202, May. [Downloadable!] (restricted)
  7. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen. [Downloadable!] (restricted)
  8. Kitch, Edmund W, 1977. "The Nature and Function of the Patent System," Journal of Law & Economics, University of Chicago Press, vol. 20(2), pages 265-90, October.
  9. Besen, Stanley M & Raskind, Leo J, 1991. "An Introduction to the Law and Economics of Intellectual Property," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 3-27, Winter. [Downloadable!] (restricted)
  10. Carl Shapiro, 1983. "Optimal Pricing of Experience Goods," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 497-507, Autumn. [Downloadable!] (restricted)
  11. Shapiro, Carl, 1985. "Patent Licensing and R&D Rivalry," American Economic Review, American Economic Association, vol. 75(2), pages 25-30, May. [Downloadable!] (restricted)
  12. Basberg, Bjorn L., 1987. "Patents and the measurement of technological change: A survey of the literature," Research Policy, Elsevier, vol. 16(2-4), pages 131-141, August. [Downloadable!] (restricted)
  13. Teece, David J., 1986. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 15(6), pages 285-305, December. [Downloadable!] (restricted)
  14. Mazzoleni, Roberto & Nelson, Richard R., 1998. "The benefits and costs of strong patent protection: a contribution to the current debate," Research Policy, Elsevier, vol. 27(3), pages 273-284, July. [Downloadable!] (restricted)
  15. Ordover, Janusz A, 1991. "A Patent System for Both Diffusion and Exclusion," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 43-60, Winter. [Downloadable!] (restricted)
  16. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-21, January. [Downloadable!] (restricted)
  17. Schmalensee, Richard, 1982. "Product Differentiation Advantages of Pioneering Brands," American Economic Review, American Economic Association, vol. 72(3), pages 349-65, June. [Downloadable!] (restricted)
    Other versions:
  18. Scotchmer, Suzanne, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter. [Downloadable!] (restricted)
  19. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297. [Downloadable!] (restricted)
  20. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September. [Downloadable!] (restricted)
  21. Harabi, N., 1991. "Innovation Versus Imitation: Empirical Evidence from Swiss Firms," Papers 15, Universitat Zurich - Wirtschaftswissenschaftliches Institut.
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