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Dynamic Effects of Patent Pools: Evidence from Inter-Generational Competition in the Optical Disc Industry

Author

Listed:
  • Tomoyuki Shimbo

    (Kanto Gakuin University)

  • Sadao Nagaoka

    (Research Institute of Economy, Trade and Industry)

  • Naotoshi Tsukada

    (University of Niigata Prefecture)

Abstract

This study investigates the dynamic effects of patent pools in the optical disc (DVD) industry, while considering the inter-generational competition between standards. We examine their patent-pool effects on innovation in terms of patenting performance for the 2nd-generation (SG) standard (BD/HDDVD) as well as for the 1st-generation (FG) standard (DVD), with the use of firm-level panel data. Our major findings are as follows: First, the formation of the FG pools led to significantly more SG innovations by the pool licensors relative to the licensees. Second, the FG pools also led to more FG innovations by the pool licensees relative to the nonparticipants with comparable innovation capabilities, which suggests the procompetitive effects of the pools. Third, the licensors had significant innovations for the FG, starting in the pre-standard period. Thus, the patent pool appears to have positive dynamic effects, which thereby complemented the standards for the DVD pools.

Suggested Citation

  • Tomoyuki Shimbo & Sadao Nagaoka & Naotoshi Tsukada, 2024. "Dynamic Effects of Patent Pools: Evidence from Inter-Generational Competition in the Optical Disc Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(3), pages 383-419, May.
    • Handle: RePEc:kap:revind:v:64:y:2024:i:3:d:10.1007_s11151-023-09938-6
    DOI: 10.1007/s11151-023-09938-6
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    More about this item

    Keywords

    Patent pool; Innovation; Inter-generational competition; Licensing;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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