Does patenting increase the private incentives to innovate? A microeconometric analysis

Emmanuel Duguet and Claire Lelarge

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: This paper examines whether patenting increases the private incentives to innovate in manufacturing. In order to study this issue, we build a model in which the value of an innovation depends both on the type of innovation implemented (product, process) and on the existence or not of a patent protection. We obtain a three-equation model that links the values of product and process innovations to the value of patent protection. This model and the feature of the data imply the estimation of a trivariate censored Probit model. We reach two main conclusions. First, the value of patent rights increases the incentives to innovate in products but not in processes and, conversely, the value of product innovations only and not the one of process innovations increases the incentives to patent. Second, we find that the distributions of product innovations and of patent values are skewed contrary to the values of process innovations. A significant share of the skewness in product values would come from the efficiency differences of intellectual property rights among the different activities.

Keywords: Innovation; Patent; GHK simulator; System of limited dependent variables; Asymptotic least squares (search for similar items in EconPapers)
JEL-codes: C15 C35 L60 O31 O34 (search for similar items in EconPapers)
Date: 2004
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https://www.bnsp.insee.fr/ark:/12148/bc6p06zr2nq/f1.pdf Document de travail de la DESE numéro G2004-08 (application/pdf)

Related works:
Journal Article: Does Patenting Increase the Private Incentives to Innovate? A Microeconometric Analysis (2012)
Working Paper: Does Patenting Increase the Private Incentives to Innovate? A Microeconometric Analysis (2012)
Working Paper: Does Patenting Increase the Private Incentives to Innovates ? A Microeconometric Analysis (2006)
Working Paper: Does Patenting Increase the Private Incentives to Innovate? A Microeconometric Analysis (2004)
Working Paper: Does patenting increase the private incentives to innovate? A microeconometric analysis (2004)
Working Paper: Does patenting increase the private incentives to innovate? A microeconometric analysis (2004)
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