Complementary assets, patent thickets and hold-up threats: Do transaction costs undermine investments in innovation?
Innovation is commercialization of technology. Imperfections in markets for technology should leave marks on physical investments for innovation. Two types of transaction costs could affect innovative investments: royality stacking and hold-up threats. Backward references in firm's patent portfolio indicate potential technology suppliers. I find a negative effect of ownership fragmentation on investments related to innovation for firms with small patent portfolios. Hold-up threats are credible when upstream patentees have less specific capital sunk than innovating firms. Differences in fixed capital stocks between downstream firms and upstream patentees negatively affect investments in innovation for firms with large patent portfolios. These effects are specific to investments in innovation. There are no comparable effects on investments in R&D or residual physical investments. The effects of patent thickets on innovation are thus not uniform. They depend on the characteristics of the downstream firm.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.de/
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.:
- Müller, Elisabeth & MacGarvie, Megan J. & Cockburn, Iain M., 2008.
"Patent Thickets, Licensing and Innovative Performance,"
ZEW Discussion Papers
08-101, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Iain M. Cockburn & Megan J. MacGarvie & Elisabeth Müller, 2010. "Patent thickets, licensing and innovative performance," Industrial and Corporate Change, Oxford University Press, vol. 19(3), pages 899-925, June.
- Cockburn, Iain M. & MacGarvie, Megan J. & Müller, Elisabeth, 2009. "Patent thickets, licensing and innovative performance," ZEW Discussion Papers 08-101 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bruno van Pottelsberghe de la Potterie & Didier François, 2009.
"The Cost Factor in Patent Systems,"
Journal of Industry, Competition and Trade,
Springer, vol. 9(4), pages 329-355, December.
- Bruno Van Pottelsberghe & Didier François, 2009. "The cost factor in patent systems," ULB Institutional Repository 2013/13422, ULB -- Universite Libre de Bruxelles.
- Bruno Van Pottelsberghe & Didier François, 2006. "The cost factor in patent systems," Working Papers CEB 06-002.RS, ULB -- Universite Libre de Bruxelles.
- Francois, Didier & van Pottelsberghe de la Potterie, Bruno, 2006. "The Cost Factor in Patent Systems," CEPR Discussion Papers 5944, C.E.P.R. Discussion Papers.
- Lucy Chennells & John Van Reenen, 1998. "Establishment Level Earnings, Technology And The Growth Of Inequality: Evidence From Britain," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 139-164.
- Almus, Matthias & Engel, Dirk & Prantl, Susanne, 2000. "The Mannheim Foundation Panels of the Centre for European Economic Research (ZEW)," ZEW Dokumentationen 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Alfonso Gambardella & Paola Giuri & Alessandra Luzzi, 2006.
"The Market for Patents in Europe,"
LEM Papers Series
2006/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- 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.
- 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.
- 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.
- Reitzig, Markus & Henkel, Joachim & Heath, Christopher, 2007. "On sharks, trolls, and their patent prey--Unrealistic damage awards and firms' strategies of "being infringed"," Research Policy, Elsevier, vol. 36(1), pages 134-154, February.
- Colin Webb & Hélène Dernis & Dietmar Harhoff & Karin Hoisl, 2005. "Analysing European and International Patent Citations: A Set of EPO Patent Database Building Blocks," OECD Science, Technology and Industry Working Papers 2005/9, OECD Publishing.
- repec:cup:cbooks:9780521522717 is not listed on IDEAS
- repec:cup:cbooks:9780521818551 is not listed on IDEAS
- Ashish Arora & Andrea Fosfuri & Alfonso Gambardella, 2004. "Markets for Technology: The Economics of Innovation and Corporate Strategy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511819, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12015. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.