Strategic Patenting and Software Innovation

Michael Noel and Mark Schankerman

STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

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

Keywords: patents; anti-commons; patent thickets; R&D spillovers; marketvalue (search for similar items in EconPapers)
JEL-codes: L43 L86 O31 O32 O33 O34 O38 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-com, nep-cse, nep-ict, nep-ino, nep-ipr, nep-pr~, nep-mic and nep-tid
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Citations: View citations in EconPapers (46)

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https://sticerd.lse.ac.uk/dps/ei/EI43.pdf (application/pdf)

Related works:
Journal Article: Strategic Patenting and Software Innovation (2013)
Working Paper: Strategic patenting and software innovation (2013)
Working Paper: Strategic Patenting and Software Innovation (2006)
Working Paper: Strategic Patenting and Software Innovation (2006)
Working Paper: Strategic patenting and software innovation (2006)
Working Paper: Strategic patenting and software innovation (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stieip:43

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