Arbeitspapier
Bargaining failure and freedom to operate: Re-evaluating the effect of patents on cumulative innovation
We investigate the causal effect of patent rights on cumulative innovation, using large-scale data that approximate the patent universe in its technological and economic variety. We introduce a novel instrumental variable for patent invalidation that exploits personnel scarcity in post-grant opposition at the European Patent Office. We find that patent invalidation leads to a highly significant and sizeable increase of follow-on inventions. The effect is driven by cases where the removal of the individual exclusion right creates substantial freedom to operate for third parties. Importantly, our results suggest that bargaining failure between original and follow-on innovators is not limited to environments commonly associated with high transaction costs.
- Language
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Englisch
- Bibliographic citation
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Series: Discussion Paper ; No. 220
- Classification
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Wirtschaft
Litigation Process
Contracting Out; Joint Ventures; Technology Licensing
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
Technological Change: Choices and Consequences; Diffusion Processes
Intellectual Property and Intellectual Capital
- Subject
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cumulative innovation
patents
bargaining failure
freedom to operate
opposition
- Event
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Geistige Schöpfung
- (who)
-
Gaessler, Fabian
Harhoff, Dietmar
Sorg, Stefan
- Event
-
Veröffentlichung
- (who)
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Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
- (where)
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München und Berlin
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gaessler, Fabian
- Harhoff, Dietmar
- Sorg, Stefan
- Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
Time of origin
- 2019
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