TILEC Seminar: Marek Giebel (Copenhagen Business School)
Patent Enforcement and Subsequent Innovation: Evidence from Patent Infringement Litigation
Does patent enforcement foster or impede innovation? While one of the main functions of the patent system is to foster innovation, the actual impact of the enforcement of patent rights on innovation is still under debate. I exploit patent infringement litigation in the United States to identify the effect of patent enforcement on cumulative innovation. The results imply that citations by subsequent patents increase after a case is filed in a court. While citations increase during the litigation period, the relative effect size decreases in the years following the closure of the case. Further results imply that signals about the value of the patent and reductions in asymmetric information seem to be particular drivers of the increase in citations. Thus, I show that the increase of subsequent citations is higher when more information is transmitted through the case. Moreover, I find elevated effects for patents that are characterized by a higher degree of novelty or narrower protection. Although there is a general positive effect, subsequent citing patents show a low degree of novelty and are close to the litigated patents in terms of technological proximity and general similarity.
- Industrial Organization
- Economics of Innovation and New Technology
- Economics of Intellectual Property Rights
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