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Intermediation in Innovation

Author

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  • Hoppe, Heidrun C.
  • Ozdenoren, Emre

Abstract

The paper offers a new theoretical framework to examine the role of intermediaries between creators and users of new inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation. An intermediary may provide an opportunity to economize on a critical component of efficient investment decisions - the expertise to sort `profitable' from `unprofitable' inventions. Our findings may help explain the surge in university patenting and licensing since the Bayh-Dole Act of 1980. The study also identifies several limitations to the potential efficiency of intermediation in innovation.

Suggested Citation

  • Hoppe, Heidrun C. & Ozdenoren, Emre, 2005. "Intermediation in Innovation," CEPR Discussion Papers 4891, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4891
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    References listed on IDEAS

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    3. David C. Mowery & Arvids A. Ziedonis, 2001. "The Geographic Reach of Market and Non-Market Channels of Technology Transfer: Comparing Citations and Licenses of University Patents," NBER Working Papers 8568, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Hellmann, Thomas, 2007. "The role of patents for bridging the science to market gap," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 624-647, August.
    2. Annelore Huyghe & Mirjam Knockaert & Mike Wright & Evila Piva, 2014. "Technology transfer offices as boundary spanners in the pre-spin-off process: the case of a hybrid model," Small Business Economics, Springer, vol. 43(2), pages 289-307, August.
    3. Polzin, Friedemann & von Flotow, Paschen & Klerkx, Laurens, 2016. "Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 34-46.
    4. Sterzi, Valerio, 2013. "Patent quality and ownership: An analysis of UK faculty patenting," Research Policy, Elsevier, vol. 42(2), pages 564-576.
    5. Troy, Irene & Werle, Raymund, 2008. "Uncertainty and the market for patents," MPIfG Working Paper 08/2, Max Planck Institute for the Study of Societies.
    6. Junghee Han & Jungho Kim, 2016. "Empirical Analysis Of Technology Transfer In Korean Universities," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-26, December.
    7. Dechenaux, Emmanuel & Thursby, Marie & Thursby, Jerry, 2009. "Shirking, sharing risk and shelving: The role of university license contracts," International Journal of Industrial Organization, Elsevier, vol. 27(1), pages 80-91, January.
    8. Abiodun A. Egbetokun, 2012. "Cooperation behaviour and innovation performance in the Nigerian manufacturing industry," Jena Economic Research Papers 2012-037, Friedrich-Schiller-University Jena.
    9. Jörg Bühnemann & Bernd Neutschel, 2014. "Universitäre Transferstruktur im Wandel - OvGU als regionaler Impulsgeber," FEMM Working Papers 140001, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    10. Celestine Chukumba & Richard Jensen, 2005. "University Invention, Entrepreneurship, and Start-Ups," NBER Working Papers 11475, National Bureau of Economic Research, Inc.
    11. Christoph Kober, 2010. "Enhancing Knowledge-Based Regional Economic Development: Potentials and Barriers for Technology Transfer Offices," NEURUS papers neurusp139, NEURUS - Network of European and US Regional and Urban Studies.
    12. Jensen, Richard A. & Thursby, Jerry G. & Thursby, Marie C., 2003. "Disclosure and licensing of University inventions: 'The best we can do with the s**t we get to work with'," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1271-1300, November.
    13. Kodama, Toshihiro, 2008. "The role of intermediation and absorptive capacity in facilitating university-industry linkages--An empirical study of TAMA in Japan," Research Policy, Elsevier, vol. 37(8), pages 1224-1240, September.
    14. Kirkels, Yvonne & Duysters, Geert, 2010. "Brokerage in SME networks," Research Policy, Elsevier, vol. 39(3), pages 375-385, April.

    More about this item

    Keywords

    innovation; Intermediation; market microstructure; matching; patent licensing; uncertainty;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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