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Financial Patenting in Europe

Author

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  • Hall, Bronwyn H.

    (UNU-MERIT, Maastricht University, Institute of Fiscal Studies, University of California-Berkeley, and NBER)

  • Thoma, Grid

    (CESPRI, Bocconi University, and University of Camerino)

  • Torrisi, Salvatore

    (Department of Management, University of Bologna, and CESPRI, Bocconi University)

Abstract

We take a first look at financial patents at the European Patent Office (EPO). As is the case at the US Patent and Trademark Office (USPTO), the number of financial patents in Europe has increased significantly in parallel with significant changes in payment and financial systems. Scholars have argued that financial patents, like other business methods patents, have low value and are owned for strategic reasons rather than for protecting real inventions. We find that established firms in non-financial sectors with diversified patent portfolios own a large share of financial patents at the EPO. However, new specialized technology providers in the financial area also hold a number of such patents. Decisions on the financial patent applications take longer and they are more likely to be refused by the patent office, suggesting greater uncertainty over validity than for other patents. They are also more likely to be opposed, which is consistent with the fact that their other economic value indicators are higher.

Suggested Citation

  • Hall, Bronwyn H. & Thoma, Grid & Torrisi, Salvatore, 2010. "Financial Patenting in Europe," MERIT Working Papers 2010-011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2010011
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mari Komulainen & Tuomas Takalo, 2013. "Does State Street Lead to Europe? The Case of Financial Exchange Innovations," European Financial Management, European Financial Management Association, vol. 19(3), pages 521-557, June.
    2. Francesco Castellaneta & Raffaele Conti & Aleksandra Kacperczyk, 2017. "Money secrets: How does trade secret legal protection affect firm market value? Evidence from the uniform trade secret act," Strategic Management Journal, Wiley Blackwell, vol. 38(4), pages 834-853, April.
    3. Bronwyn H. Hall, 2009. "Business And Financial Method Patents, Innovation, And Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(4), pages 443-473, September.
    4. Torrisi, Salvatore & Gambardella, Alfonso & Giuri, Paola & Harhoff, Dietmar & Hoisl, Karin & Mariani, Myriam, 2016. "Used, blocking and sleeping patents: Empirical evidence from a large-scale inventor survey," Research Policy, Elsevier, vol. 45(7), pages 1374-1385.
    5. repec:zbw:bofrdp:2009_022 is not listed on IDEAS
    6. Haeussler, Carolin & Harhoff, Dietmar & Mueller, Elisabeth, 2014. "How patenting informs VC investors – The case of biotechnology," Research Policy, Elsevier, vol. 43(8), pages 1286-1298.
    7. Rentocchini, Francesco, 2011. "Sources and characteristics of software patents in the European Union: Some empirical considerations," Information Economics and Policy, Elsevier, vol. 23(1), pages 141-157, March.
    8. Mari Komulainen & Tuomas Takalo, 2013. "Does State Street Lead to Europe? The Case of Financial Exchange Innovations," European Financial Management, European Financial Management Association, vol. 19(3), pages 521-557, June.
    9. Bronwyn H. Hall, 2009. "Business And Financial Method Patents, Innovation, And Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(s1), pages 443-473, September.
    10. Sandner, Philipp G. & Block, Joern, 2011. "The market value of R&D, patents, and trademarks," Research Policy, Elsevier, vol. 40(7), pages 969-985, September.
    11. Akcomak, Semih & Stoneman, Paul, 2010. "How novel is social capital: Three cases from the British history that reflect social capital," MERIT Working Papers 2010-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Cédric Schneider, 2011. "The battle for patent rights in plant biotechnology: evidence from opposition fillings," The Journal of Technology Transfer, Springer, vol. 36(5), pages 565-579, October.
    13. Carlo Capuano & Iacopo Grassi, 2020. "Imperfect patent protection, licensing, and willingness to pay for the innovation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(2), pages 333-359, June.
    14. Jiaming Jiang & Rajeev K. Goel & Xingyuan Zhang, 2019. "Knowledge flows from business method software patents: influence of firms’ global social networks," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1070-1096, August.
    15. Korkeamäki, Timo & Takalo, Tuomas, 2010. "Valuation of innovation: The case of iPhone," MPRA Paper 28042, University Library of Munich, Germany.

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    More about this item

    Keywords

    market valuation; intangible assets; patents; software; Europe;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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