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Intellectual Property Protection and Firm Innovation

  • Liad Wagman

    ()

    (Illinois Institute of Technology)

  • Yoni Pruzansky

    ()

    (Illinois Institute of Technology)

This paper studies the question of whether and how an employee innovator should commercialize an innovation, when doing so within the firm is less costly than pursuing an outside venture, but risks expropriation by the firm. We show that a weaker chance of expropriation, interpreted as the firm`s ability to protect internally developed intellectual property, can facilitate commercialization of innovations.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I4-P264.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 4 ()
Pages: 2922-2932

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Handle: RePEc:ebl:ecbull:eb-11-00570
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  1. Gil Avnimelech & Morris Teubal, 2004. "Venture capital start-up co-evolution and the emergence & development of Israel's new high tech cluster," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(1), pages 33-60.
  2. Sakakibara, Mariko & Branstetter, Lee, 2001. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 77-100, Spring.
  3. Anton, James J & Yao, Dennis A, 1995. "Start-ups, Spin-offs, and Internal Projects," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 362-78, October.
  4. Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-28, Spring.
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