Partial Observability Estimates of Supply and Demand for Trademarks of Start-Ups

Bernadette Power and Gavin Reid

Working Papers from Centre for Business Research, University of Cambridge

Abstract: This paper estimates simultaneously the supply and the demand determinants of the trademark adoption decision made by start-ups. We use a partial observability econometric model, as non-adoption is unobserved. Estimation is by maximum likelihood using the partial observability bivariate probit (POBP) model. This is run on a large (N > 13k) representative unbalanced longitudinal panel of surviving start-ups, derived from the Kauffman Foundation start-up dataset (2004-2011) for the USA. Our model is shown to provide a good explanation of supply and demand determinants of trademark adoption, in terms of signs of key variables, and statistical significance. For example, size, incorporation, and expenditure on R&D are important on the supply-side; and copyrights, licensing out, and being in a high knowledge information sector, are important on the demand-side. Policy implications are considered, focusing on marginal and elasticity effects.

Keywords: Trademark adoption; business start-ups; intellectual property; supply and demand (search for similar items in EconPapers)
JEL-codes: D01 D22 K11 L21 L26 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-dcm, nep-ent, nep-ipr and nep-sbm
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