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Technology Entry in the Presence of Patent Thickets

Bronwyn Hall, Christian Helmers and Georg von Graevenitz
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Christian Helmers: Santa Clara University

No 2015-09v2, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity, and the potential for hold-up due to the presence of patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to less entry into technologies regardless of a firm’s size.

Keywords: IPR; patents; entry; technological opportunity; technological complexity; holdup (search for similar items in EconPapers)
JEL-codes: K11 L20 O31 O34 (search for similar items in EconPapers)
Date: 2017-01-01
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Related works:
Journal Article: Technology entry in the presence of patent thickets (2021) Downloads
Journal Article: Technology Entry in the Presence of Patent Thickets (2021) Downloads
Working Paper: Technology entry in the presence of patent thickets (2016) Downloads
Working Paper: Technology Entry in the Presence of Patent Thickets (2015) Downloads
Working Paper: Technology Entry in the Presence of Patent Thickets (2015) Downloads
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