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Patent breadth as effective barrier to market entry

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  • Diana Heger
  • Alexandra K. Zaby

Abstract

Firms protecting their invention by a patent have the legal right to exclude competitors from using the patented matter. However, despite patent protection, competitors could enter the market by ‘inventing around’. Provided that inventing around becomes more difficult the broader a patent is, the strength of protection against market entry increases in patent breadth. Building on a theoretical benchmark formalizing the relationship between varying patent breadth and the threat of market entry, our empirical analysis supports the prediction that inventors perceive broad patents as effective market entry barriers.

Suggested Citation

  • Diana Heger & Alexandra K. Zaby, 2018. "Patent breadth as effective barrier to market entry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(2), pages 174-188, February.
    • Handle: RePEc:taf:ecinnt:v:27:y:2018:i:2:p:174-188
    DOI: 10.1080/10438599.2017.1322720
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    Cited by:

    1. You, Li & Zhang, Zongyi & Wang, Wei & Zhao, Xuezhou, 2024. "Learning from innovation award winners? Technology spillovers and firm innovation," International Review of Financial Analysis, Elsevier, vol. 92(C).
    2. Ma, Ding & Yu, Qian & Li, Jing & Ge, Mengni, 2021. "Innovation diffusion enabler or barrier: An investigation of international patenting based on temporal exponential random graph models," Technology in Society, Elsevier, vol. 64(C).
    3. Chan-Yuan Wong & Jeffrey Sheu & Keun Lee, 2023. "Assessing the quest of SMEs in pivoting for new technological ventures: comparing the patenting indexes of seven developed cities," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(7), pages 4029-4064, July.
    4. Dirk Czarnitzki & Kristof Van Criekingen, 2021. "Information Leakage, Imitation, and the Patent System," Working Papers of Department of Management, Strategy and Innovation, Leuven 682983, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    5. Cai, Helen (Huifen) & Sarpong, David & Tang, Xiaoyun & Zhao, Guiqin, 2020. "Foreign patents surge and technology spillovers in China (1985–2009): Evidence from the patent and trade markets," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    6. Grimaldi, Michele & Greco, Marco & Cricelli, Livio, 2021. "A framework of intellectual property protection strategies and open innovation," Journal of Business Research, Elsevier, vol. 123(C), pages 156-164.

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