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Another brick in the wall? Technology leaders, patents, and the threat of market entry

Author

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  • Heger, Diana
  • Zaby, Alexandra K.

Abstract

Technology leaders protecting a technological headstart with a patent are provided with a powerful legal measure to restrict market entry. We analyze the impact of knowledge spillover on the decision to patent and the effect of varying patent breadth on the threat of market entry. An empirical test of our theoretical results suggests that (i) a large technological lead is protected by a patent only in industries with high knowledge spillover, and that (ii) patent breadth can mitigate the market entry threat.

Suggested Citation

  • Heger, Diana & Zaby, Alexandra K., 2014. "Another brick in the wall? Technology leaders, patents, and the threat of market entry," University of Tübingen Working Papers in Business and Economics 77, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    • Handle: RePEc:zbw:tuewef:77
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    More about this item

    Keywords

    patenting decision; disclosure requirement; patent breadth; market entry threat; IPC codes;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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