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Patent Licensing, Technology Transfer, and Innovation

Author

Listed:
  • Mark A. Lemley
  • Robin Feldman

Abstract

Traditional justifications for patents are based on direct or indirect contribution to product creation. Non-practicing entities (NPEs) might provide such innovation, either directly, through working the patent or transfer of technology to others who do, or indirectly, when others copy. Available evidence suggests, however, that ex post licensing demands from NPEs do not normally involve these activities. Some have argued that patents are valuable without technology transfer because the ability to exclude may drive commercialization that would not otherwise occur. We demonstrate that even if commercialization theories sometimes justify patent protection, they cannot justify most NPE lawsuits or licensing demands.

Suggested Citation

  • Mark A. Lemley & Robin Feldman, 2016. "Patent Licensing, Technology Transfer, and Innovation," American Economic Review, American Economic Association, vol. 106(5), pages 188-192, May.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:5:p:188-92
    Note: DOI: 10.1257/aer.p20161092
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    Citations

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    Cited by:

    1. Bernhard Ganglmair & Christian Helmers & Brian J Love, 2022. "The Effect of Patent Litigation Insurance: Theory and Evidence from NPEs [“Valuable Patents]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 38(3), pages 741-773.
    2. Lisa Craiut & Constantin Bungau & Tudor Bungau & Cristian Grava & Pavel Otrisal & Andrei-Flavius Radu, 2022. "Technology Transfer, Sustainability, and Development, Worldwide and in Romania," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    3. Shaobo Li & Jie Hu & Yuxin Cui & Jianjun Hu, 2018. "DeepPatent: patent classification with convolutional neural networks and word embedding," Scientometrics, Springer;Akadémiai Kiadó, vol. 117(2), pages 721-744, November.
    4. Xianhai Huang & Yi Wang & Zhujun Zhu & Xueyin Song, 2022. "Quality of imported intermediates, innovation behaviour and markups: Firm‐level evidence from China," The World Economy, Wiley Blackwell, vol. 45(9), pages 2796-2819, September.
    5. Zhenjie Yang & Chuyi Shen & Fat Iam Lam, 2024. "Scientific and Technological Innovation and Cooperation in the Greater Bay Area of China: A Case Study of University Patent Applications and Transformation," Sustainability, MDPI, vol. 16(2), pages 1-15, January.
    6. Vidita Choudhry & Todd A. Ponzio, 2020. "Modernizing federal technology transfer metrics," The Journal of Technology Transfer, Springer, vol. 45(2), pages 544-559, April.
    7. Brander, James A. & Spencer, Barbara J., 2021. "Patent assertion entities and the courts: Injunctive or fee-based relief?," International Review of Law and Economics, Elsevier, vol. 65(C).
    8. Michael J. Hall, 2022. "New technology transfer metrics for the National Institute of Standards and Technology," The Journal of Technology Transfer, Springer, vol. 47(5), pages 1573-1583, October.
    9. G.S Ascione & L. Ciucci & C. Detotto & V. Sterzi, 2021. "Do universities look like patent trolls? An Empirical Study of University Patent Infringement Litigation in the United States," Working Paper CRENoS 202105, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    10. Udo Bauer & Herbert Endres & Michael Dowling & Roland Helm, 2018. "Organisational Capabilities For Technology Transfer: A Study Of R&D-Intensive Firms In Germany," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-31, May.

    More about this item

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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