IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2014059.html
   My bibliography  Save this paper

Appropriability mechanisms, innovation and productivity: Evidence from the UK

Author

Listed:
  • Hall, B.H.

    (UNU-MERIT, and University of California at Berkeley)

  • Sena, Vania

    (Essex Business School, University of Essex)

Abstract

We use an extended version of the well-established Crepon, Duguet and Mairesse model (1998) to model the relationship between appropriability mechanisms, innovation and firm-level productivity. We enrich this model in several ways. First, we consider different types of innovation spending and study the differences in estimates when innovation spending (rather than R&D spending) is used to predict innovation in the CDM model. Second, we assume that a firm simultaneously innovates and chooses among different appropriability methods (formal or informal) to protect the innovation. Finally, in the third stage, we estimate the impact of the innovation output conditional on the choice of appropriability mechanisms on firm's productivity.

Suggested Citation

  • Hall, B.H. & Sena, Vania, 2014. "Appropriability mechanisms, innovation and productivity: Evidence from the UK," MERIT Working Papers 2014-059, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2014059
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/wppdf/2014/wp2014-059.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Amaresh K. Tiwari & Pierre Mohnen & Franz C. Palm & Sybrand Schim Loeff, 2008. "Financial Constraint and R&D Investment: Evidence from CIS," Palgrave Macmillan Books, in: Cees Beers & Alfred Kleinknecht & Roland Ortt & Robert Verburg (ed.), Determinants of Innovative Behaviour, chapter 10, pages 217-242, Palgrave Macmillan.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Hanna Hottenrott & Bronwyn H. Hall & Dirk Czarnitzki, 2016. "Patents as quality signals? The implications for financing constraints on R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(3), pages 197-217, April.
    4. Klaus Kultti & Tuomas Takalo & Juuso Toikka, 2007. "Secrecy versus patenting," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 22-42, March.
    5. Bronwyn Hall & Christian Helmers & Mark Rogers & Vania Sena, 2014. "The Choice between Formal and Informal Intellectual Property: A Review," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 375-423, June.
    6. Giuseppe Scellato, 2007. "Patents, firm size and financial constraints: an empirical analysis for a panel of Italian manufacturing firms," Cambridge Journal of Economics, Oxford University Press, vol. 31(1), pages 55-76, January.
    7. Nordhaus, William D, 1969. "An Economic Theory of Technological Change," American Economic Review, American Economic Association, vol. 59(2), pages 18-28, May.
    8. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    9. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2013. "Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(3), pages 300-328, April.
    10. Nancy T. Gallini, 2002. "The Economics of Patents: Lessons from Recent U.S. Patent Reform," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 131-154, Spring.
    11. Harabi, Najib, 1995. "Appropriability of technical innovations an empirical analysis," Research Policy, Elsevier, vol. 24(6), pages 981-992, November.
    12. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
    13. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    14. Rachel Griffith, 1999. "Using the ARD establishment level data to look at foreign ownership and productivity in the UK," IFS Working Papers W99/06, Institute for Fiscal Studies.
    15. Petr Hanel, 2008. "The Use Of Intellectual Property Rights And Innovation By Manufacturing Firms In Canada," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(4), pages 285-309.
    16. Hipp, Christiane B. & Herstatt, Cornelius, 2006. "Patterns of innovation and protection activities within service companies: Results from a German study on service-intensive companies," Working Papers 45, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    17. Griffith, Rachel, 1999. "Using the ARD Establishment Level Data to Look at Foreign Ownership and Productivity in the United Kingdom," Economic Journal, Royal Economic Society, vol. 109(456), pages 416-442, June.
    18. MORIKAWA Masayuki, 2014. "Innovation in the Service Sector and the Role of Patents and Trade Secrets (Japanese)," Discussion Papers (Japanese) 14024, Research Institute of Economy, Trade and Industry (RIETI).
    19. Arundel, Anthony, 2001. "The relative effectiveness of patents and secrecy for appropriation," Research Policy, Elsevier, vol. 30(4), pages 611-624, April.
    20. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    21. Kumar, Nagesh & Aggarwal, Aradhna, 2005. "Liberalization, outward orientation and in-house R&D activity of multinational and local firms: A quantitative exploration for Indian manufacturing," Research Policy, Elsevier, vol. 34(4), pages 441-460, May.
    22. repec:ind:iegddp:18 is not listed on IDEAS
    23. MORIKAWA Masayuki, 2014. "Innovation in the Service Sector and the Role of Patents and Trade Secrets," Discussion papers 14030, Research Institute of Economy, Trade and Industry (RIETI).
    24. Leiponen, Aija & Byma, Justin, 2009. "If you cannot block, you better run: Small firms, cooperative innovation, and appropriation strategies," Research Policy, Elsevier, vol. 38(9), pages 1478-1488, November.
    25. Keld Laursen & Ammon Salter, 2005. "My Precious. The Role of Appropriability Strategies in Shaping Innovative Performance," DRUID Working Papers 05-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    26. Alessandra Canepa & Paul Stoneman, 2008. "Financial constraints to innovation in the UK: evidence from CIS2 and CIS3," Oxford Economic Papers, Oxford University Press, vol. 60(4), pages 711-730, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomä, Jörg & Bizer, Kilian, 2013. "To protect or not to protect? Modes of appropriability in the small enterprise sector," Research Policy, Elsevier, vol. 42(1), pages 35-49.
    2. Thomä Jörg & Zimmermann Volker, 2013. "Knowledge Protection Practices in Innovating SMEs," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(5-6), pages 691-717, October.
    3. Capponi, Giovanna & Criscuolo, Paola & Martinelli, Arianna & Nuvolari, Alessandro, 2019. "Profiting from innovation: Evidence from a survey of Queen's Awards winners," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 155-169.
    4. Crass, Dirk & Garcia Valero, Francisco & Pitton, Francesco & Rammer, Christian, 2016. "Protecting innovation through patents and trade secrets: Determinants and performance impacts for firms with a single innovation," ZEW Discussion Papers 16-061, ZEW - Leibniz Centre for European Economic Research.
    5. Bos, Brenda & Broekhuizen, Thijs L.J. & de Faria, Pedro, 2015. "A dynamic view on secrecy management," Journal of Business Research, Elsevier, vol. 68(12), pages 2619-2627.
    6. Barros, Henrique M., 2021. "Neither at the cutting edge nor in a patent-friendly environment: Appropriating the returns from innovation in a less developed economy," Research Policy, Elsevier, vol. 50(1).
    7. Crass, Dirk & Valero, Francisco Garcia & Pitton, Francesco & Rammer, Christian, 2019. "Protecting Innovation Through Patents and Trade Secrets: Evidence for Firms with a Single Innovation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(1), pages 117-156.
    8. Insu Cho & Heejun Park & Joseph Kim, 2012. "The moderating effect of innovation protection mechanisms on the competitiveness of service firms," Service Business, Springer;Pan-Pacific Business Association, vol. 6(3), pages 369-386, September.
    9. Carolina Castaldi, 2021. "Sustainable innovation and intellectual property rights: friends, foes or perfect strangers?," LEM Papers Series 2021/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Bronwyn Hall & Christian Helmers & Mark Rogers & Vania Sena, 2014. "The Choice between Formal and Informal Intellectual Property: A Review," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 375-423, June.
    11. Langlois, Jonathan & BenMahmoud-Jouini, Sihem & Servajean-Hilst, Romaric, 2023. "Practicing secrecy in open innovation – The case of a military firm," Research Policy, Elsevier, vol. 52(1).
    12. Mounir Amdaoud & Christian Le Bas, 2020. "Firm Patenting and Types of innovation in Least Developed Countries. An Empirical Investigation on Patenting Determinants," CEPN Working Papers hal-03059466, HAL.
    13. Sofka, Wolfgang & Shehu, Edlira & de Faria, Pedro, 2014. "Multinational subsidiary knowledge protection—Do mandates and clusters matter?," Research Policy, Elsevier, vol. 43(8), pages 1320-1333.
    14. de Faria, Pedro & Sofka, Wolfgang, 2010. "Knowledge protection strategies of multinational firms--A cross-country comparison," Research Policy, Elsevier, vol. 39(7), pages 956-968, September.
    15. Hurmelinna-Laukkanen, Pia & Yang, Jialei, 2022. "Distinguishing between appropriability and appropriation: A systematic review and a renewed conceptual framing," Research Policy, Elsevier, vol. 51(1).
    16. Schmidt, Tobias, 2006. "An Empirical Analysis of the Effects of Patents and Secrecy on Knowledge Spillovers," ZEW Discussion Papers 06-048, ZEW - Leibniz Centre for European Economic Research.
    17. Elizabeth Webster & Paul H. Jensen, 2011. "Do Patents Matter for Commercialization?," Journal of Law and Economics, University of Chicago Press, vol. 54(2), pages 431-453.
    18. Sofka, Wolfgang & de Faria, Pedro & Shehu, Edlira, 2018. "Protecting knowledge: How legal requirements to reveal information affect the importance of secrecy," Research Policy, Elsevier, vol. 47(3), pages 558-572.
    19. Sanghoon Ahn & Bronwyn H. Hall & Keun Lee (ed.), 2014. "Intellectual Property for Economic Development," Books, Edward Elgar Publishing, number 15464.
    20. Francesco Chirico & Giuseppe Criaco & Massimo Baù & Lucia Naldi & Luis R. Gomez-Mejia & Josip Kotlar, 2020. "To patent or not to patent: That is the question. Intellectual property protection in family firms," Entrepreneurship Theory and Practice, , vol. 44(2), pages 339-367, March.

    More about this item

    Keywords

    productivity; innovation; intellectual property; appropriability; patents; CDM model;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2014059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.