Patents, competition and firms’ innovation incentives

Pilar Beneito, María E. Rochina-Barrachina and Amparo Sanchis-Llopis
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María E. Rochina-Barrachina: University of Valencia and ERICES
Authors registered in the RePEc Author Service: Maria Engracia Rochina Barrachina

No 1211, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: In this paper we analyze how industrial property rights (IPRs), measured by patents granted, affect competition at the industry level, and their induced effects on firms’ innovation incentives. We use for that purpose a panel dataset of Spanish manufacturing firms for the period 1990-2006. Using indicators of fundamentals of competitive pressure and factor analysis techniques, we construct a new synthetic measure of competition. Our results indicate that although the use of IPRs (in terms of industry patenting intensity) reduces market competition, it may also encourage firms’ innovation incentives (in terms of firms’ R&D expenditures and the number of product innovations).

Keywords: IPRs; patents; competition; innovation (search for similar items in EconPapers)
JEL-codes: D22 L10 L60 O31 O34 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2012-07
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino, nep-ipr, nep-pr~, nep-knm, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://repecsrv.uv.es/paper/RePEc/pdf/eec_1211.pdf First version, 2012 (application/pdf)

Related works:
Journal Article: Patents, Competition, and Firms' Innovation Incentives (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1211

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