IDEAS home Printed from https://ideas.repec.org/a/eis/articl/103bosworth.html
   My bibliography  Save this article

The Rate of Depreciation of Technological Knowledge: Evidence from Patent Renewal Data

Author

Listed:
  • D Bosworth
  • G Jobome

Abstract

This paper is critical of studies that assume the rate of depreciation of technological knowledge is exogenously given and constant. It argues that the development of rival inventions and/or the existence of a pool of inventions from which spillovers take place impact directly on the size and value of the stock of knowledge. Patent data seem ideal to test such hypotheses as patents represent a store of R&D knowledge, and the declining value of the exclusive right to use an invention is reflected in the failure to renew patent protection. The empirical model includes not only rival invention and spillover effects, but other variables suggested by the existing literature, such as renewal costs and investment activity (representing new niches for inventions). A new quasi-panel patent data set has been constructed, tracing the survival characteristics of each cohort of patents over the period 1950-75. The data allow the first empirical tests of whether the hazard rate from the patent stock is duration dependent, which we demonstrate is linked to the highly skewed distribution of the value of patents. The long sample period also allows an exploration of whether the influences on the obsolescence of technological knowledge have changed over the post-War period.

Suggested Citation

  • D Bosworth & G Jobome, 2003. "The Rate of Depreciation of Technological Knowledge: Evidence from Patent Renewal Data," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 59-82, March.
  • Handle: RePEc:eis:articl:103bosworth
    as

    Download full text from publisher

    File URL: http://www.economicissues.org.uk/Files/2003/103eBosworth.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kirsten Labuske & Jochen Streb, 2008. "Technological Creativity and Cheap Labour? Explaining the Growing International Competitiveness of German Mechanical Engineering before World War I," German Economic Review, Verein für Socialpolitik, vol. 9, pages 65-86, February.
    2. Streb, Jochen & Wallusch, Jacek & Yin, Shuxi, 2007. "Knowledge spill-over from new to old industries: The case of German synthetic dyes and textiles (1878-1913)," Explorations in Economic History, Elsevier, vol. 44(2), pages 203-223, April.
    3. Aurora A. C. Teixeira, 2004. "How Has the Portuguese Innovation Capability Evolved? Estimating a Time Series of the Stock of Technological Knowledge, 1960-2001," FEP Working Papers 153, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eis:articl:103bosworth. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan Wheatley). General contact details of provider: http://edirc.repec.org/data/bsntuuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.