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Does Patenting Increase the Private Incentives to Innovates ? A Microeconometric Analysis

Listed author(s):
  • Emmanuel Duguet

    (Crest)

  • Claire Lelarge

    (Crest)

The role played by the patent system as an innovation incentive is at the center of an importantcurrent debate. The relevance of the patent system for the development of high-tech industries hasbeen put into question. This paper adds to the prior evidence by looking at the relationship betweenpatent rights and innovation performance in French manufacturing over the period 1997-1999. In orderto sort problems of endogeneity out, we use a structural model of research, innovation and patenting.In particular, since the type of innovation (product, process) may drive appropriability conditions, themodel takes this dimension into account. The empirical results are clear-cut: patents promotesignificantly product innovations but not process innovations. Similarly, the patent premium increaseswith the value of product innovations but is not directly affected by the value of process innovations.

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File URL: http://crest.science/RePEc/wpstorage/2006-09.pdf
File Function: Crest working paper version
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Paper provided by Center for Research in Economics and Statistics in its series Working Papers with number 2006-09.

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Length: 44
Date of creation: 2006
Handle: RePEc:crs:wpaper:2006-09
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