Dynamic Effects of Patent Pools: Evidence from Inter-Generational Competition in the Optical Disc Industry

Tomoyuki Shimbo (), Sadao Nagaoka and Naotoshi Tsukada ()
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Tomoyuki Shimbo: Kanto Gakuin University
Naotoshi Tsukada: University of Niigata Prefecture

Review of Industrial Organization, 2024, vol. 64, issue 3, No 4, 383-419

Abstract: Abstract This study investigates the dynamic effects of patent pools in the optical disc (DVD) industry, while considering the inter-generational competition between standards. We examine their patent-pool effects on innovation in terms of patenting performance for the 2nd-generation (SG) standard (BD/HDDVD) as well as for the 1st-generation (FG) standard (DVD), with the use of firm-level panel data. Our major findings are as follows: First, the formation of the FG pools led to significantly more SG innovations by the pool licensors relative to the licensees. Second, the FG pools also led to more FG innovations by the pool licensees relative to the nonparticipants with comparable innovation capabilities, which suggests the procompetitive effects of the pools. Third, the licensors had significant innovations for the FG, starting in the pre-standard period. Thus, the patent pool appears to have positive dynamic effects, which thereby complemented the standards for the DVD pools.

Keywords: Patent pool; Innovation; Inter-generational competition; Licensing (search for similar items in EconPapers)
JEL-codes: O32 O34 (search for similar items in EconPapers)
Date: 2024
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Working Paper: Dynamic Effects of Patent Pools: Evidence from inter-generational competition in optical disk industry (2015)
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DOI: 10.1007/s11151-023-09938-6

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