EconPapers    
Economics at your fingertips  
 

Recombinant innovation and the boundaries of the firm

Rachel Griffith, Sokbae (Simon) Lee and Bas Straathof

International Journal of Industrial Organization, 2017, vol. 50, issue C, 34-56

Abstract: Recombinant innovation, the combination of existing ideas, is important for technological progress; we want to understand how important market frictions are in stifling the transmission of ideas from one firm to another. Although the theoretical literature emphasizes the importance of these frictions, direct empirical evidence on them is limited. We use comprehensive data on patent applications from the European Patent Office and a multiple spells duration model to provide estimates that suggest that they are substantial. It is around 30% more costly to successfully discover and utilize new ideas created in another firm than in your own. This compares to the increased costs of accessing new ideas across national borders of around 7%, and across technologies of around 20%. These result point towards substantial imperfections in the market for technology.

Keywords: Recombinant innovation; Multinational firms; Patent policy (search for similar items in EconPapers)
JEL-codes: F23 O32 O33 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718716303368
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Recombinant innovation and the boundaries of the firm (2014) Downloads
Working Paper: Recombinant innovation and the boundaries of the firm (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:50:y:2017:i:c:p:34-56

DOI: 10.1016/j.ijindorg.2016.10.005

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-28
Handle: RePEc:eee:indorg:v:50:y:2017:i:c:p:34-56