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The Economics of Pending Patents

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  • Johannes Koenen
  • Martin Peitz

Abstract

We provide a treatment of a number of questions pertaining to pending patents – a subject that has so-far mainly been discussed en-passant in the existing literature. We present the underlying institutional and legal framework that governs pending patents and some basic facts related to them. Then, we focus on the strategic considerations of firms in the earliest stage of the patenting process and the interplay with the patent office. This is followed by considering the perspective of the patent and trademark offices (PTOs), in particular, acknowledging the limited resources that are available to PTOs. Finally, we investigate the potential abuse of pending patents and the role of reputation of patenting firms.

Suggested Citation

  • Johannes Koenen & Martin Peitz, 2011. "The Economics of Pending Patents," CESifo Working Paper Series 3657, CESifo.
    • Handle: RePEc:ces:ceswps:_3657
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    Cited by:

    1. Kenneth Zahringer & Christos Kolympiris & Nicholas Kalaitzandonakes, 2018. "Time to patent at the USPTO: the case of emerging entrepreneurial firms," The Journal of Technology Transfer, Springer, vol. 43(4), pages 923-952, August.
    2. Krzysztof Klincewicz & Szymon Szumiał, 2022. "Successful patenting—not only how, but with whom: the importance of patent attorneys," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(9), pages 5111-5137, September.
    3. Koenen, Johannes & Peitz, Martin, 2015. "Firm reputation and incentives to “milk” pending patents," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 18-29.
    4. Yamauchi, Isamu & Nagaoka, Sadao, 2015. "An economic analysis of deferred examination system: Evidence from a policy reform in Japan," International Journal of Industrial Organization, Elsevier, vol. 39(C), pages 19-28.

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    More about this item

    Keywords

    patenting; pending patents; innovation; patent office overload; patent inspection; grant delays;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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