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Patent Paradox Revisited: Determinants of Patenting in the U.S. Semiconductor Industry, 1980-94

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  • Hall, Bronwyn H.
  • Ham Ziedonis, Rosemarie

Abstract

This paper examines the patenting behavior of firms in an industry characterized by rapid technological change and cumulative innovation. Recent evidence suggests that semiconductor firms do not rely heavily on patents, despite the strengthening of US patent rights in the early 1980s. Yet the propensity of semiconductor firms to patent has risen dramatically over the past decade. This paper explores this apparent paradox by analyzing the patenting activities of almost 100 US semiconductor firms during 1980-94. The results suggest that stronger patents may have facilitated entry by firms in niche product markets, while spawning "patent portfolio races" among capital-intensive firms.

Suggested Citation

  • Hall, Bronwyn H. & Ham Ziedonis, Rosemarie, 1999. "Patent Paradox Revisited: Determinants of Patenting in the U.S. Semiconductor Industry, 1980-94," Department of Economics, Working Paper Series qt1rg1088v, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt1rg1088v
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    References listed on IDEAS

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    Cited by:

    1. Thomas Hoeren & Francesca Guadagno & Sacha Wunsch-Vincent, 2015. "Breakthrough technologies - Semiconductor, innovation and intellectual property," WIPO Economic Research Working Papers 27, World Intellectual Property Organization - Economics and Statistics Division.

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    More about this item

    Keywords

    patents; intellectual property; cross-licensing; semiconductor industry;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • K2 - Law and Economics - - Regulation and Business Law
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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