Appropriation Strategy and the Motivations to use the Patent System: an Econometric Analysis at the Firm Level in French Manufacturing

Intellectual property rights business management practices: A survey of the literature

“…Far more prominent however is the jump of secrecy from last place in the Yale survey to tie for the first in the present survey. The disclosure aspect of patents is, according to Duguet and Kabla (1998) As demonstrated, the number of patented inventions has increased notably since the beginning of the 1980s. The survey asked respondents to check off, in a non-exclusive manner, which of the following reasons motivated their most recent decision to apply for product and process patents:…”

“…After controlling for the effect of other factors, the sector of activity has a strong influence on product patent propensities but very little effect on process patent propensities. Results of the French survey presented by (Duguet and Kabla, 1998) indicate that firms patent mainly to build a strong negotiating position and to avoid litigation. The propensity to patent is reduced by the reluctance of firms to disclose information; the cost of patenting and litigation does not have, according to their econometric study an effect on patenting.…”

Innovation strategy and the patenting behavior of firms

“…Since then, academic research has increasingly tackled various aspects of the patenting behavior of firms, from the theoretical analysis of patent systems (e.g., Baumol 2002), to the use of patent data to measure innovation performance and knowledge spillover indicators (e.g., Griliches 1990). With the development of extensive and accessible patent databases, several authors have analyzed the micro-determinants of innovation using patent indicators as a measure of innovative output (e.g., Crépon et al 1996Crépon et al , 1998Duguet and Kabla 1998;Cohen et al 2000). 1 Most of these studies have focused on traditional determinants of patenting 1 Patent-based indicators are only one measure of innovation output.…”

“…Results of studies using the same innovation indicator are often contradictory as well, as illustrated by Cohen and Levin (1989) in their review of the literature on the relationship between R&D and market power. Concerning the number of patent applications, Duguet and Kabla (1998) and Nielsen (2001) find a positive impact of firm's market power, i.e. the efficiency effect would dominate the replacement effect.…”

“…More recently, Hall et al (1986) argued that there is a strong contemporaneous effect between R&D and patenting and that it is difficult to find the adequate lag structure between them. Most studies that include an R&D indicator in patent equations find a positive and significant relationship (e.g., Duguet and Kabla 1998;Crépon et al 1998;Brouwer and Kleinknecht 1999). Actually, the relationship between R&D and patents can be seen as a virtuous cyclethe former induces the latter, which in turn requires further development costs in order to reach the market.…”