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Institutionalized Incentives for Ingenuity – Patent Value and the German Employees’ Inventions Act

  • Harhoff, Dietmar
  • Hoisl, Karin

Germany is one of few countries in which the monetary compensation for inventors is not only determined by negotiations between employer and employee-inventor, but also by relatively precise legal provisions. In this paper, we describe the characteristics of the German Employees’ Inventions Act (GEIA) and discuss which incentives it creates. We rely on responses from a recent survey of 3,350 German inventors to test hypotheses regarding this institution. We conclude from our data that the law creates substantial monetary rewards for productive inventors. The qualitative responses from our survey confirm this view, but also point to a number of dysfunctional effects.

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File URL: http://epub.ub.uni-muenchen.de/1262/1/German_Inventor_Compensation_230106_DP_LMU.pdf
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Paper provided by University of Munich, Munich School of Management in its series Discussion Papers in Business Administration with number 1262.

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Date of creation: 2006
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Handle: RePEc:lmu:msmdpa:1262
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  1. Narin, Francis & Breitzman, Anthony, 1995. "Inventive productivity," Research Policy, Elsevier, vol. 24(4), pages 507-519, July.
  2. Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Giuri, Paola & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin & LeBas, Christia, 2006. "Everything You Always Wanted to Know about Inventors (But Never Asked): Evidence from the PatVal-EU Survey," CEPR Discussion Papers 5752, C.E.P.R. Discussion Papers.
  3. Jean O. Lanjouw & Ariel Pakes & Jonathan Putnam, 1996. "How to Count Patents and Value Intellectual Property: Uses of Patent Renewal and Application Data," NBER Working Papers 5741, National Bureau of Economic Research, Inc.
  4. Sanford Grossman & Oliver Hart, . "An Analysis of the Principal-Agent Problem," Rodney L. White Center for Financial Research Working Papers 15-80, Wharton School Rodney L. White Center for Financial Research.
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