Do Patents Matter for Commercialization?
In this paper, we take another look at the role that patents play in determining successful commercialization. We address this issue using survey data on 3,736 Australian inventions which were the subject of a patent application between 1986 and 2005. Although almost half of the survey respondents' patent applications were not granted, many still attempted to commercialize their inventions. This variation in patenting and commercialization outcomes enables us to address the question: do patents matter for commercialization? Our results suggest that while the receipt of a patent grant had a positive and significant effect on most commercialization stages, the magnitude of the effect is quite modest. In fact, the marginal increase in the probability of attempting a commercialization stage due to the presence of a patent varies from 2.0 (export) to 8.0 (mass production stage) percentage points.
|Date of creation:||Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia|
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lee Branstetter & Yoshiaki Nakamura, 2003. "Is Japan's Innovative Capacity in Decline?," NBER Working Papers 9438, National Bureau of Economic Research, Inc.
- Scott Shane, 2002. "Selling University Technology: Patterns from MIT," Management Science, INFORMS, vol. 48(1), pages 122-137, January.
- James Bessen & Eric Maskin, 2006.
"Sequential Innovation, Patents, and Imitation,"
Economics Working Papers
0025, Institute for Advanced Study, School of Social Science.
- Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000.
"Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not),"
NBER Working Papers
7552, National Bureau of Economic Research, Inc.
- Wesley M Cohen & Richard R Nelson & John P Walsh, 2003. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not)," Levine's Working Paper Archive 618897000000000624, David K. Levine.
- Sunil Kanwar & Robert Evenson, 2003.
"Does intellectual property protection spur technological change?,"
Oxford Economic Papers,
Oxford University Press, vol. 55(2), pages 235-264, April.
- Sunil Kanwar & Robert E Evanson, 2004. "Does Intellectual Property Protection Spur Technological Change?," Levine's Working Paper Archive 122247000000000455, David K. Levine.
- Sunil Kanwar & Robert Evenson, 2001. "Does Intellectual Property Protection Spur Technological Change," Working Papers 831, Economic Growth Center, Yale University.
- Teece, David J., 1986.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 15(6), pages 285-305, December.
- Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
- Mansfield, Edwin & Schwartz, Mark & Wagner, Samuel, 1981. "Imitation Costs and Patents: An Empirical Study," Economic Journal, Royal Economic Society, vol. 91(364), pages 907-18, December.
- Joshua S. Gans & David H. Hsu & Scott Stern, 2002.
"When Does Start-Up Innovation Spur the Gale of Creative Destruction?,"
RAND Journal of Economics,
The RAND Corporation, vol. 33(4), pages 571-586, Winter.
- Joshua S. Gans & David H. Hsu & Scott Stern, 2000. "When Does Start-Up Innovation Spur the Gale of Creative Destruction?," NBER Working Papers 7851, National Bureau of Economic Research, Inc.
- Markman, Gideon D. & Gianiodis, Peter T. & Phan, Phillip H. & Balkin, David B., 2005. "Innovation speed: Transferring university technology to market," Research Policy, Elsevier, vol. 34(7), pages 1058-1075, September.
- Harabi, N., 1993.
"Appropriabiblity of Technical Innovations: An Empirical Analysis,"
31a, Universitat Zurich - Wirtschaftswissenschaftliches Institut.
- Harabi, Najib, 1995. "Appropriability of technical innovations an empirical analysis," Research Policy, Elsevier, vol. 24(6), pages 981-992, November.
- Harabi, Najib, 1994. "Appropriability of Technical Innovations: An Empirical Analysis," MPRA Paper 26267, University Library of Munich, Germany.
- Emmanuel Dechenaux & Brent Goldfarb & Scott Shane & Marie Thursby, 2008.
"Appropriability and Commercialization: Evidence from MIT Inventions,"
INFORMS, vol. 54(5), pages 893-906, May.
- Emmanuel Dechenaux & Brent Goldfarb & Scott Shane & Mari Thursby, 2006. "Appropriability and Commercialization: Evidence from MIT Inventions," Discussion Papers 05-017, Stanford Institute for Economic Policy Research.
- Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
- Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
- Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003.
"The impact of public R&D expenditure on business R&D,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 12(3), pages 225-243.
- Dominique Guellec & Bruno van Pottelsberghe de la Potterie, 2000. "The Impact of Public R&D Expenditure on Business R&D," OECD Science, Technology and Industry Working Papers 2000/4, OECD Publishing.
- Bruno Van Pottelsberghe & Dominique Guellec, 2003. "The impact of public R&D expenditure on business R&D," ULB Institutional Repository 2013/6213, ULB -- Universite Libre de Bruxelles.
- Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
- Mansfield, Edwin & Wagner, Samuel, 1975. "Organizational and Strategic Factors Associated with Probabilities of Success in Industrial R & D," The Journal of Business, University of Chicago Press, vol. 48(2), pages 179-98, April.
- Asplund, Marcus & Sandin, Rickard, 1996.
"The Survival of New Products,"
SSE/EFI Working Paper Series in Economics and Finance
138, Stockholm School of Economics.
- Mazzoleni, Roberto & Nelson, Richard R., 1998. "The benefits and costs of strong patent protection: a contribution to the current debate," Research Policy, Elsevier, vol. 27(3), pages 273-284, July.
- Ashish Arora & Marco Ceccagnoli, 2006. "Patent Protection, Complementary Assets, and Firms' Incentives for Technology Licensing," Management Science, INFORMS, vol. 52(2), pages 293-308, February.
- Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297.
- Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 783-832.
- Kanwar, Sunil, 2007. "Business enterprise R&D, technological change, and intellectual property protection," Economics Letters, Elsevier, vol. 96(1), pages 120-126, July.
- Fabienne Orsi & Benjamin Coriat, 2005. "Are "strong patents" beneficial to innovative activities? Lessons from the genetic testing for breast cancer controversies," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1205-1221, December.
- James Bessen & Michael J. Meurer, 2008. "Do Patents Perform Like Property?," Working Papers 0801, Research on Innovation.
- Pisano, Gary P., 1991. "The governance of innovation: Vertical integration and collaborative arrangements in the biotechnology industry," Research Policy, Elsevier, vol. 20(3), pages 237-249, June.
- Sakakibara, Mariko & Branstetter, Lee, 2001. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 77-100, Spring.
- Giovanni Dosi & Franco Malerba & Giovanni B. Ramello & Francesco Silva, 2006. "Information, appropriability, and the generation of innovative knowledge four decades after Arrow and Nelson: an introduction," Industrial and Corporate Change, Oxford University Press, vol. 15(6), pages 891-901, December.
- Paul H. Jensen & Elizabeth Webster, 2009. "Knowledge management: does capture impede creation?," Industrial and Corporate Change, Oxford University Press, vol. 18(4), pages 701-727, August.
- Saviotti, Pier Paolo, 1998. "On the dynamics of appropriability, of tacit and of codified knowledge," Research Policy, Elsevier, vol. 26(7-8), pages 843-856, April.
- Amesse, Fernand & Desranleau, Claude & Etemad, Hamid & Fortier, Yves & Seguin-Dulude, Louise, 1991. "The individual inventor and the role of entrepreneurship : A survey of the Canadian evidence," Research Policy, Elsevier, vol. 20(1), pages 13-27, February.
- Nancy T. Gallini, 2002. "The Economics of Patents: Lessons from Recent U.S. Patent Reform," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 131-154, Spring.
- Nerkar, Atul A. & McGrath, Rita Gunther & MacMillan, Ian C., 1996. "Three facets of satisfaction and their influence on the performance of innovation teams," Journal of Business Venturing, Elsevier, vol. 11(3), pages 167-188, May.
When requesting a correction, please mention this item's handle: RePEc:iae:iaewps:wp2009n08. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Abbey Treloar)
If references are entirely missing, you can add them using this form.