Patents and innovation : Are the brakes broken, or how to restore patents’ dynamic efficiency ?
The standard view of patents emphasizes their dynamic efficiency. It considers that, by providing firms with incentives to invest in R&D and to disclose their knowledge, patents encourage innovation and increase social welfare in the long run. Yet, a growing body of literature opposes this view and asks for patent reform or even for the abolition of the patent system. In this work, which reviews the most recent literature on patents, we show that patents can have a negative impact on the dynamics of innovation. This is not due to some intrinsic properties of the patent system but to some of its recent evolutions which mean that, nowadays, too many patents are granted and that patent information is bad. The combination of those two elements explains most of the problems induced by modern patent systems such as hold-up (patent trolls), anti-commons (royalty stacking), and high transaction costs in markets for technology. We conclude by showing that realistic reforms can solve those problems and ensure that the patent system becomes again an instrument of dynamic efficiency.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: PEGE. 61, Aven. de la Forêt-Noire 67000 Strasbourg|
Phone: +33 3 68 85 20 69
Fax: +33 3 68 85 20 70
Web page: http://www.beta-umr7522.fr/
More information through EDIRC
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.:
- Ashish Arora & Robert P. Merges, 2004. "Specialized supply firms, property rights and firm boundaries," Industrial and Corporate Change, Oxford University Press, vol. 13(3), pages 451-475, June.
- Boldrin,Michele & Levine,David K., 2008.
"Against Intellectual Monopoly,"
Cambridge University Press, number 9780521879286, December.
- Josh Lerner, 2002. "Patent Protection and Innovation Over 150 Years," NBER Working Papers 8977, National Bureau of Economic Research, Inc.
- Josh Lerner, 2009. "The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues," American Economic Review, American Economic Association, vol. 99(2), pages 343-48, May.
- James Bessen & Jennifer L. Ford & Michael J. Meurer, 2011. "The Private and Social Costs of Patent Trolls," Working Papers 1103, Research on Innovation.
- Alberto Di Minin & Mario Benassi, 2008. "Playing In Between: Patents’ Brokers In Markets For Technology," Working Papers 200802, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
- François Lévêque & Yann Ménière, 2011.
"Patent pool formation: Timing matters,"
- Lemley, Mark A & Shapiro, Carl, 2007. "Patent Hold-Up and Royalty Stacking," Competition Policy Center, Working Paper Series qt8638s257, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- 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.
- Encaoua, David & Guellec, Dominique & Martinez, Catalina, 2006.
"Patent systems for encouraging innovation: Lessons from economic analysis,"
Elsevier, vol. 35(9), pages 1423-1440, November.
- David Encaoua & Dominique Guellec & Catalina Martínez, 2006. "Patent Systems for Encouraging Innovation: Lessons from Economic Analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00177614, HAL.
- Bronwyn H. Hall & Dietmar Harhoff, 2012.
"Recent Research on the Economics of Patents,"
Annual Review of Economics,
Annual Reviews, vol. 4(1), pages 541-565, 07.
- Gaetan de Rassenfosse & Bruno van Pottelsberghe de la Potterie, 2013.
"The Role Of Fees In Patent Systems: Theory And Evidence,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 27(4), pages 696-716, 09.
- de Rassenfosse, Gaétan & van Pottelsberghe de la Potterie, Bruno, 2010. "The role of fees in patent systems: Theory and evidence," CEPR Discussion Papers 7879, C.E.P.R. Discussion Papers.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2010. "The Role of Fees in Patent Systems: Theory and Evidence," Working Papers ECARES ECARES 2010-023, ULB -- Universite Libre de Bruxelles.
- Berger, Florian & Blind, Knut & Thumm, Nikolaus, 2012. "Filing behaviour regarding essential patents in industry standards," Research Policy, Elsevier, vol. 41(1), pages 216-225.
- Catherine Tucker, 2012. "Patent Trolls and Technology Diffusion," NBER Chapters, in: Standards, Patents and Innovations National Bureau of Economic Research, Inc.
- Carl Shapiro, 2010. "Injunctions, Hold-Up, and Patent Royalties-super-1," American Law and Economics Review, Oxford University Press, vol. 12(2), pages 509-557.
- Dominique Guellec & Catalina Martinez & Pluvia Zuniga, 2012.
"Pre-emptive patenting: securing market exclusion and freedom of operation,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 21(1), pages 1-29, October.
- Dominique Guellec & Catalina Martinez & Maria Pluvia Zuniga, 2009. "Pre-Emptive Patenting: Securing Market Exclusion and Freedom of Operation," OECD Science, Technology and Industry Working Papers 2009/8, OECD Publishing.
- James Bessen & Michael J. Meurer, 2008. "Do Patents Perform Like Property?," Working Papers 0801, Research on Innovation.
- Eckert, Andrew & Langinier, Corinne, 2014.
"A Survey of the Economics of Patent Systems and Procedures,"
2014-10, University of Alberta, Department of Economics.
- Andrew Eckert & Corinne Langinier, 2014. "A Survey Of The Economics Of Patent Systems And Procedures," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 996-1015, December.
- Murray, Fiona & Stern, Scott, 2007. "Do formal intellectual property rights hinder the free flow of scientific knowledge?: An empirical test of the anti-commons hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 63(4), pages 648-687, August.
- Bekkers, Rudi & Bongard, René & Nuvolari, Alessandro, 2011. "An empirical study on the determinants of essential patent claims in compatibility standards," Research Policy, Elsevier, vol. 40(7), pages 1001-1015, September.
- Andrei Hagiu & David B. Yoffie, 2013. "The New Patent Intermediaries: Platforms, Defensive Aggregators, and Super-Aggregators," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 45-66, Winter.
- Liliane Hilaire-Pérez & Christine MacLeod & Alessandro Nuvolari, 2013. "Innovation Without Patents. An Introduction," Revue économique, Presses de Sciences-Po, vol. 64(1), pages 5-8.
- Michele Boldrin & David K Levine, 2012.
"The Case Against Patents,"
Levine's Working Paper Archive
786969000000000465, David K. Levine.
- Steven Shavell & Tanguy van Ypersele, 1999.
"Rewards versus Intellectual Property Rights,"
NBER Working Papers
6956, National Bureau of Economic Research, Inc.
- SHAVELL, Steven & VAN YPERSELE, Tanguy, . "Rewards versus intellectual property rights," CORE Discussion Papers RP 1597, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Shavell, S. & van Ypersele de Strihou, T.P.M.C., 1999. "Rewards versus intellectual property rights," Discussion Paper 1999-26, Tilburg University, Center for Economic Research.
- Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January.
- Georg Graevenitz & Stefan Wagner & Dietmar Harhoff, 2013.
"Incidence and Growth of Patent Thickets: The Impact of Technological Opportunities and Complexity,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 61(3), pages 521-563, 09.
- Graevenitz, Georg von & Wagner, Stefan & Harhoff, Dietmar, 2011. "Incidence and Growth of Patent Thickets - The Impact of Technological Opportunities and Complexity," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 356, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Harhoff, Dietmar & von Graevenitz, Georg & Wagner, Stefan, 2008. "Incidence and Growth of Patent Thickets - The Impact of Technological Opportunities and Complexity," CEPR Discussion Papers 6900, C.E.P.R. Discussion Papers.
- Tassey, Gregory, 2000. "Standardization in technology-based markets," Research Policy, Elsevier, vol. 29(4-5), pages 587-602, April.
- Cohen, Wesley M. & Goto, Akira & Nagata, Akiya & Nelson, Richard R. & Walsh, John P., 2002. "R&D spillovers, patents and the incentives to innovate in Japan and the United States," Research Policy, Elsevier, vol. 31(8-9), pages 1349-1367, December.
- Pénin, Julien, 2012. "Strategic uses of patents in markets for technology: A story of fabless firms, brokers and trolls," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 633-641.
- Graevenitz, Georg von & Wagner, Stefan & Harhoff, Dietmar, 2009.
"How to measure patent thickets – a novel approach,"
Discussion Papers in Business Administration
10962, University of Munich, Munich School of Management.
- Steffen Brenner, 2009. "Optimal formation rules for patent pools," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 373-388, September.
- Fiona E. Murray & Scott Stern, 2007. "Do Formal Intellectual Property Rights Hinder the Free Flow of Scientific Knowledge?: An Empirical Test of the Anti-Commons Hypothesis," NBER Chapters, in: Academic Science and Entrepreneurship: Dual Engines of Growth National Bureau of Economic Research, Inc.
- Ménière, Yann & Lévêque, François, 2008.
"Early commitments help patent pool formation,"
PIE/CIS Discussion Paper
384, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Josh Lerner & Jean Tirole, 2004.
"Efficient Patent Pools,"
American Economic Review,
American Economic Association, vol. 94(3), pages 691-711, June.
- Alfonso Gambardella, 2005. "Patents and the division of innovative labor," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1223-1233, December.
- Bernard Caillaud & Anne Duchêne, 2011.
"Patent Office and Innovation Policy: Nobody's perfect,"
- Caillaud, Bernard & Duchêne, Anne, 2011. "Patent office in innovation policy: Nobody's perfect," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 242-252, March.
- Bernard Caillaud & Anne Duchene, 2009. "Patent Office in innovation policy: Nobody's perfect," PSE Working Papers halshs-00575019, HAL.
- Kitch, Edmund W, 1977. "The Nature and Function of the Patent System," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 265-90, October.
- Markus Reitzig & Joachim Henkel & Ferdinand Schneider, 2010. "Collateral damage for R&D manufacturers: how patent sharks operate in markets for technology," Industrial and Corporate Change, Oxford University Press, vol. 19(3), pages 947-967, June.
- repec:hal:journl:halshs-00177614 is not listed on IDEAS
- 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.
- Edwin Mansfield, 1986. "Patents and Innovation: An Empirical Study," Management Science, INFORMS, vol. 32(2), pages 173-181, February.
When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2014-02. 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: ()
If references are entirely missing, you can add them using this form.