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The Duration of Patent Examination at the European Patent Office

Author Info

  • Dietmar Harhoff

    ()

    (Institute for Innovation Research, Technology Management and Entrepreneurship, School of Management, University of Munich, 80539 Munich, Germany; and Centre for Economic Policy Research, London EC1V 0DG, United Kingdom)

  • Stefan Wagner

    ()

    (Institute for Innovation Research, Technology Management and Entrepreneurship, School of Management, University of Munich, 80539 Munich, Germany)

Abstract

We analyze the duration and outcomes of patent examination at the European Patent Office utilizing an unusually rich data set covering a random sample of 215,265 applications filed between 1982 and 1998. In our empirical analysis, we distinguish between three groups of determinants: applicant characteristics, indicators of patent quality and value, and determinants that affect the complexity of the examination task. The results from an accelerated failure time model indicate that more controversial claims lead to slower grants but faster withdrawals, whereas well-documented applications are approved faster and withdrawn more slowly. We find strong evidence that applicants accelerate grant proceedings for their most valuable patents, but that they also prolong the battle for such patents if a withdrawal or refusal is imminent. This paper develops implications of these results for managerial decision making in research and development and innovation management.

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File URL: http://dx.doi.org/10.1287/mnsc.1090.1069
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Article provided by INFORMS in its journal Management Science.

Volume (Year): 55 (2009)
Issue (Month): 12 (December)
Pages: 1969-1984

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Handle: RePEc:inm:ormnsc:v:55:y:2009:i:12:p:1969-1984
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Keywords: patents; patent examination; survival analysis; patent citations; European Patent Office;

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  1. Harhoff, Dietmar & Reitzig, Markus, 2004. "Determinants of opposition against EPO patent grants--the case of biotechnology and pharmaceuticals," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 443-480, April.
  2. Mark A. Lemley & Carl Shapiro, 2005. "Probabilistic Patents," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 75-98, Spring.
  3. Joshua S. Gans & David H. Hsu & Scott Stern, 2008. "The Impact of Uncertain Intellectual Property Rights on the Market for Ideas: Evidence from Patent Grant Delays," Management Science, INFORMS, vol. 54(5), pages 982-997, May.
  4. Bronwyn Hall, 2004. "Exploring the patent explosion," ESRC Centre for Business Research - Working Papers wp291, ESRC Centre for Business Research.
  5. Dietmar Harhoff & Francis Narin & F. M. Scherer & Katrin Vopel, 1999. "Citation Frequency And The Value Of Patented Inventions," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 511-515, August.
  6. Tom Lee & Louis L. Wilde, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, Oxford University Press, vol. 94(2), pages 429-436.
  7. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, 04.
  8. Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January.
  9. Johnson, Daniel K N & Popp, David, 2003. " Forced Out of the Closet: The Impact of the American Inventors Protection Act on the Timing of Patent Disclosure," RAND Journal of Economics, The RAND Corporation, vol. 34(1), pages 96-112, Spring.
  10. Thomas, Jonathan M, 1996. "On the Interpretation of Covariate Estimates in Independent Competing-Risks Models," Bulletin of Economic Research, Wiley Blackwell, vol. 48(1), pages 27-39, January.
  11. Manuel Trajtenberg, 1990. "A Penny for Your Quotes: Patent Citations and the Value of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 172-187, Spring.
  12. Pitkethly, Robert H., 2001. "Intellectual property strategy in Japanese and UK companies: patent licensing decisions and learning opportunities," Research Policy, Elsevier, vol. 30(3), pages 425-442, March.
  13. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 395-410.
  14. Manuel Trajtenberg & Rebecca Henderson & Adam Jaffe, 1997. "University Versus Corporate Patents: A Window On The Basicness Of Invention," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(1), pages 19-50.
  15. Popp David & Juhl Ted & Johnson Daniel K.N., 2004. "Time In Purgatory: Examining the Grant Lag for U.S. Patent Applications," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-45, November.
  16. De Fraja, Giovanni, 1993. "Strategic spillovers in patent races," International Journal of Industrial Organization, Elsevier, vol. 11(1), pages 139-146, March.
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