Strategic patenting and software innovation

Noel, Michael and Schankerman, Mark (2006) Strategic patenting and software innovation. CEP Discussion Papers (CEPDP0740). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Strategic patenting is widely believed to raise the costs of innovating, especially in industries characterised by cumulative innovation. This paper studies the effects of strategic patenting on R&D, patenting and market value in the computer software industry. We focus on two key aspects: patent portfolio size which affects bargaining power in patent disputes, and the fragmentation of patent rights (.patent thickets.) which increases the transaction costs of enforcement. We develop a model that incorporates both effects, together with R&D spillovers. Using panel data for the period 1980-99, we find evidence that both strategic patenting and R&D spillovers strongly affect innovation and market value of software firms.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2006 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions T Technology > T Technology (General) > T201 Patents. Trademarks
JEL classification:	L - Industrial Organization > L4 - Antitrust Issues and Policies > L43 - Legal Monopolies and Regulation or Deregulation L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services; Computer Software O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O34 - Intellectual Property Rights: National and International Issues O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O38 - Government Policy
Date Deposited:	27 Feb 2024 12:21
Last Modified:	27 Feb 2024 12:21
URI:	http://eprints.lse.ac.uk/id/eprint/121695

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