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Do Patents Matter for Commercialization?

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  • Elizabeth Webster
  • Paul H. Jensen

Abstract

This paper estimates the effect of a patent grant on the likelihood that an invention will progress to different commercialization stages, using survey data on 3,162 inventions that were the subject of a patent application. We find that about 40 percent of all inventions advanced to the point of market launch and mass production. Although a patent grant had no effect on the decision to proceed with the commercialization process, being refused a patent reduced the probability of attempting market launch and mass production by about 13 percentage points. Over and above this, having protection from several other complementary patents increased the probability of commercialization by an additional 3-5 percentage points.

Suggested Citation

  • Elizabeth Webster & Paul H. Jensen, 2011. "Do Patents Matter for Commercialization?," Journal of Law and Economics, University of Chicago Press, vol. 54(2), pages 431-453.
  • Handle: RePEc:ucp:jlawec:doi:10.1086/658487
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    1. repec:spr:scient:v:94:y:2013:i:3:d:10.1007_s11192-012-0891-6 is not listed on IDEAS
    2. Gaétan de Rassenfosse & Adam B. Jaffe, 2017. "Econometric Evidence on the R&D Depreciation Rate," NBER Working Papers 23072, National Bureau of Economic Research, Inc.
    3. Russell Thomson & Elizabeth Webster, 2012. "The Design of R & D Support Schemes for Industry," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 464-477, December.
    4. Simon Wakeman, 2012. "How does obtaining intellectual property rights impact technology commercialization strategy for start-up innovators? Reconciling the effects on licensing vs. financing," ESMT Research Working Papers ESMT-12-03 (R1), ESMT European School of Management and Technology, revised 11 Jul 2012.
    5. repec:eee:eecrev:v:101:y:2018:i:c:p:625-642 is not listed on IDEAS

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