Science and the Market for Technology

Ashish Arora (), Sharon Belenzon and Jungkyu Suh

No 28534, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Well functioning Markets for Technology (MFT) allow inventors to sell their inventions to others that may derive more value from them. We argue that the growing reliance on science in inventions enhances MFT. In addition to higher quality inventions, reliance on science may enhance gains from trade and reduce the transfer cost of knowledge and other transaction costs. Using large scale data, we show that patents citing science are more likely to be traded, especially for novel patents and for smaller inventors. Leveraging the fall of the Berlin Wall as a source of exogenous variation in the relevant scientific knowledge to technological fields, we confirm reliance on science increases the likelihood that the invention will be traded

JEL-codes: L24 O3 O31 O33 O34 O36 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-ind, nep-ino and nep-tid
Note: PR
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Citations: View citations in EconPapers (1)

Published as Ashish Arora & Sharon Belenzon & Jungkyu Suh, 2022. "Science and the Market for Technology," Management Science, vol 68(10), pages 7176-7201.

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