Does patenting increase the private incentives to innovate? A microeconometric analysis
AbstractThis paper examines whether patenting increases the private incentives to innovate in manufacturing. To study this issue, we build a model in which the value of an innovation depends both on the type of innovation implemented (product, process) and on the existence of a patent protection or not. We obtain a three-equation model that links the values of product and process innovations to the value of patent protection. This model and the feature of the data imply the estimation of a censored trivariate Probit model. We reach two main conclusions. First, the value of patent rights increases the incentives to innovate in products but not in processes and, conversely, the value of product innovations only – and not the one of process innovations – increases the incentives to patent. Second, we find that the distributions of product innovations and of patent values are skewed contrary to the values of process innovations. A significant share of the skewness in product values would come from the efficiency differences of intellectual property rights between the different activities.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0411019.
Length: 45 pages
Date of creation: 16 Nov 2004
Date of revision:
Note: Type of Document - pdf; pages: 45
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Innovation; Patent; GHK simulator; System of limited dependent variables; Asymptotic least squares;
Other versions of this item:
- E. Duguet & C. Lelarge, 2004. "Does patenting increase the private incentives to innovate? A microeconometric analysis," Documents de Travail de la DESE - Working Papers of the DESE g2004-08, Institut National de la Statistique et des Etudes Economiques, DESE.
- Emmanuel Duguet & Claire Lelarge, 2004. "Does patenting increase the private incentives to innovate ? A microeconometric analysis," Cahiers de la Maison des Sciences Economiques v04096, Université Panthéon-Sorbonne (Paris 1).
- Emmanuel Duguet & Claire Lelarge, 2006. "Does Patenting Increase the Private Incentives to Innovates ? A Microeconometric Analysis," Working Papers 2006-09, Centre de Recherche en Economie et Statistique.
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-11-22 (All new papers)
- NEP-COM-2004-11-22 (Industrial Competition)
- NEP-DCM-2004-11-22 (Discrete Choice Models)
- NEP-INO-2004-11-22 (Innovation)
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.:
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