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The heterogeneous costs of disclosure and the propensity to patent

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  • Diana Heger
  • Alexandra K. Zaby

Abstract

This article explores whether the heterogeneous costs of disclosure induced by patenting can serve as an explanation for the empirically observed heterogeneity of the propensity to patent across firms. A theoretical model identifies the interplay between market entry barriers and the usefulness of the information disclosed through patenting for competitors as a crucial factor driving the extent of disclosure costs that a patenting firm faces. High costs of disclosure may outweigh the merits of patenting, leading innovators to rely on alternative protection strategies, such as secrecy. An empirical investigation using the German part of the CIS data provides evidence for these theoretical predictions. Copyright 2013 Oxford University Press 2013 All rights reserved, Oxford University Press.

Suggested Citation

  • Diana Heger & Alexandra K. Zaby, 2013. "The heterogeneous costs of disclosure and the propensity to patent," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 630-652, July.
    • Handle: RePEc:oup:oxecpp:v:65:y:2013:i:3:p:630-652
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    File URL: http://hdl.handle.net/10.1093/oep/gpt018
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    Citations

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    Cited by:

    1. Bernadette Power & Gavin C Reid, 2021. "The Impact of Intellectual Property Types on the Performance of Business Start-ups in the USA," Working Papers wp523, Centre for Business Research, University of Cambridge.
    2. Zaby, Alexandra, 2020. "Safe harbors for patent infringers: sequential innovation under incomplete patent protection," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224653, Verein für Socialpolitik / German Economic Association.
    3. Bronwyn H. Hall & Christian Helmers & Mark Rogers & Vania Sena, 2013. "The importance (or not) of patents to UK firms," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 603-629, July.
    4. Michele Bernini & Georgios Efthyvoulou & Ian Gregory-Smith & Jolian McHardy & Antonio Navas, 2021. "Interlocking directorships and patenting coordination," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(4), pages 382-411, May.
    5. Bronwyn Hall & Christian Helmers & Mark Rogers & Vania Sena, 2014. "The Choice between Formal and Informal Intellectual Property: A Review," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 375-423, June.
    6. Bronwyn H. Hall & Christian Helmers & Mark Rogers & Vania Sena, 2013. "The importance (or not) of patents to UK firms," Oxford Economic Papers, Oxford University Press, vol. 65(3), pages 603-629, July.
    7. Roper, Stephen & Hewitt-Dundas, Nola, 2015. "Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data," Research Policy, Elsevier, vol. 44(7), pages 1327-1340.
    8. Nemlioglu, Ilayda & Mallick, Sushanta K., 2020. "Do innovation-intensive firms mitigate their valuation uncertainty during bad times?," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 913-940.
    9. Heger, Diana & Zaby, Alexandra K., 2013. "A look at both sides of the coin: Investigating the protective and the disclosure effect of patenting," ZEW Discussion Papers 13-048, ZEW - Leibniz Centre for European Economic Research.
    10. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza & Piran, Md Jalil, 2020. "A game theoretic approach for the duopoly pricing of energy-efficient appliances regarding innovation protection and social welfare," Energy, Elsevier, vol. 200(C).
    11. Professor Bronwyn Hall, 2013. "The importance (or not) of patents to UK firms," National Institute of Economic and Social Research (NIESR) Discussion Papers 410, National Institute of Economic and Social Research.
    12. Jussi Heikkilä & Annika Lorenz, 2018. "Need for speed? Exploring the relative importance of patents and utility models among German firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(1), pages 80-105, January.
    13. Nnaemeka Vincent Emodi & Girish Panchakshara Murthy & Chinenye Comfort Emodi & Adaeze Saratu Augusta Emodi, 2017. "A Literature Review on the Factors Influencing Patent Propensity," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 1-30, June.

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