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Patent Policies of Small Danish Firms in Three Industries

In: Contemporary Management of Innovation

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  • Lee Davis

Abstract

Empirical surveys of the economic effects of patents have uncovered striking industry differences in patent effectiveness and importance (e.g., Cohen et al.. 2000; Harabi, 1995; Bertin & Wyatt, 1988; Levin et al., 1987). Other studies have focused specifically on the role of patents in high-tech sectors. In telecommunications, for example, firms typically cross-license their inventions, using patents as a kind of bargaining tool or trading currency to secure appropriability (e.g., Grindley & Teece, 1997; Hall & Ham, 1999). The software industry is interesting because the nature of digital technology renders appropriability difficult (e.g., Conner & Rumelt, 1991; Davis, 2002; Shapiro & Varian, 1999). Initially, copyrights were used to protect software innovations; only since the 1980s has it been possible to patent them. In pharmaceuticals, chemicals, and biotechnology, by contrast, patents are widely recognized as both important and effective in securing appropriability (e.g., Arora, 1997; Liebeskind et al., 1996; Merges & Nelson, 1994).

Suggested Citation

  • Lee Davis, 2006. "Patent Policies of Small Danish Firms in Three Industries," Palgrave Macmillan Books, in: Jon Sundbo & Andrea Gallina & Göran Serin & Jerome Davis (ed.), Contemporary Management of Innovation, chapter 13, pages 248-263, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-37884-1_17
    DOI: 10.1057/9780230378841_17
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    Cited by:

    1. Wolfgang Gick, 2008. "Little Firms and Big Patents: A Model of Small‐Firm Patent Signaling," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(4), pages 913-935, December.

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