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Giving away the game? The impact of the disclosure effect on the patenting decision

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  • Heger, Diana
  • Zaby, Alexandra K.

Abstract

This article explores the propensity to patent in the light of the disclosure effect. Unlike earlier approaches concerned with the patenting decision, we take into account that a disclosure effect may decrease the merits of patenting by facilitating inventing around the patent for competitors. In our theoretical model, we find that the disclosure effect - contingent on the competitive environment of the inventor - possibly has substantial negative effects on the propensity to patent. An empirical investigation of the theoretical results finds support for the proposed effects. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 12-010.

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Date of creation: 2012
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Handle: RePEc:zbw:zewdip:12010

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Keywords: Patenting decision; secrecy; disclosure requirement; patent breadth; horizontal product differentiation; circular city;

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References

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  1. Yiannaka, Amalia & Fulton, Murray, 2006. "Strategic patent breadth and entry deterrence with drastic product innovations," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 177-202, January.
  2. Sudipto Bhattacharya & Sergei Guriev, 2005. "Patents vs trade secrets: knowledge licensing and spillover," LSE Research Online Documents on Economics 444, London School of Economics and Political Science, LSE Library.
  3. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October.
  4. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  5. Aoki, Reiko & Spiegel, Yossi, 2009. "Pre-grant patent publication and cumulative innovation," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 333-345, May.
  6. Erkal, Nisvan, 2005. "The decision to patent, cumulative innovation, and optimal policy," International Journal of Industrial Organization, Elsevier, vol. 23(7-8), pages 535-562, September.
  7. Waterson, Michael, 1990. "The Economics of Product Patents," American Economic Review, American Economic Association, vol. 80(4), pages 860-69, September.
  8. Klemperer, Paul, 1990. "How Broad Should the Scope of Patent Protection Be?," CEPR Discussion Papers 392, C.E.P.R. Discussion Papers.
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Cited by:
  1. Tina Wolf, 2013. "Innovative start-up patenting: a new approach towards identification and determinants," Jena Economic Research Papers 2013-023, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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