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

Author

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  • Emmanuel Duguet

    (EPEE – Université d’Evry Val d’Essonne)

  • Claire Lelarge

    (INSEE - Département des Études Économiques)

Abstract

This paper examines whether patenting increases the private incentives to innovate in manufacturing. To study this issue, we build a model in which the value of an innovation depends both on the type of innovation implemented (product, process) and on the existence of a patent protection or not. We obtain a three-equation model that links the values of product and process innovations to the value of patent protection. This model and the feature of the data imply the estimation of a censored trivariate Probit model. We reach two main conclusions. First, the value of patent rights increases the incentives to innovate in products but not in processes and, conversely, the value of product innovations only – and not the one of process innovations – increases the incentives to patent. Second, we find that the distributions of product innovations and of patent values are skewed contrary to the values of process innovations. A significant share of the skewness in product values would come from the efficiency differences of intellectual property rights between the different activities.

Suggested Citation

  • Emmanuel Duguet & Claire Lelarge, 2004. "Does Patenting Increase the Private Incentives to Innovate? A Microeconometric Analysis," Documents de recherche 04-12, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  • Handle: RePEc:eve:wpaper:04-12
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    File URL: http://epee.univ-evry.fr/RePEc/2004/04-12.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    2. Daiya Isogawa & Kohei Nishikawa & Hiroshi Ohashi, 2015. "Innovation Height and Firm Performance:Using Innovation Survey from Japan," CIRJE F-Series CIRJE-F-956, CIRJE, Faculty of Economics, University of Tokyo.
    3. Olfa KAMMOUN & Mohieddine RAHMOUNI, 2013. "Intellectual Property Rights, Appropriation Instruments and Innovation Activities: Evidence from Tunisian Firms," Cahiers du GREThA 2013-01, Groupe de Recherche en Economie Théorique et Appliquée.
    4. Nour, Samia Satti Osman Mohamed, 2013. "The economic importance and impacts of intellectual property rights (IPRs) in Sudan," MERIT Working Papers 014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Olfa Kammoun & Mohieddine Rahmouni, 2014. "Appropriation Instruments and Innovation Activities: Evidence from Tunisian Firms," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 11(06), pages 1-22.
    6. Bartz, Wiebke & Mohnen, Pierre & Schweiger, Helena, 2016. "The role of innovation and management practices in determining firm productivity in developing economies," MERIT Working Papers 034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. ISOGAWA Daiya & NISHIKAWA Kohei & OHASHI Hiroshi, 2012. "New-to-Market Product Innovation and Firm Performance: Evidence from a firm-level innovation survey in Japan," Discussion papers 12077, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Innovation; Patent; GHK simulator; System of limited dependent variables; Asymptotic least squares;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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