Patent protection, market uncertainty, and R&D investment

Dirk Czarnitzki and Andrew A. Toole

No 06-056, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on R&D investment.

Keywords: Real Options Theory; Uncertainty; R&D; Intellectual Property Protection; Censored Regression (search for similar items in EconPapers)
JEL-codes: C25 O31 O33 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-ino, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Patent Protection, Market Uncertainty, and R&D Investment (2011)
Working Paper: Patent Protection, Market Uncertainty, and R&D Investment (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5450

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