Strategic Patenting and Software Innovation
48 Pages Posted: 3 Aug 2006
There are 2 versions of this paper
Strategic Patenting and Software Innovation
Date Written: May 2006
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.
Keywords: Patents, anti-commons, patent thickets, R&D spillovers, market value
JEL Classification: L43, L86, O31, O33, O34, O38
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
An Empirical Look at Software Patents
By James E. Bessen and Robert M. Hunt
-
The U.S. Patent System in Transition: Policy Innovation and the Innovation Process
-
Don't Fence Me in: Fragmented Markets for Technology and the Patent Acquisition Strategies of Firms
-
By Ashish Arora, Marco Ceccagnoli, ...
-
The Private Value of Software Patents
By Bronwyn H. Hall and Megan Macgarvie
-
Patent Scope and Innovation in the Software Industry
By Mark A. Lemley and Julie E. Cohen
-
Patent Scope and Innovation in the Software Industry
By Mark A. Lemley and Julie E. Cohen
-
By Alfonso Gambardella, Dietmar Harhoff, ...