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Running to Stand Still? - Intellectual Property and Value Added in Innovating Firms

Author

Listed:
  • Christine Greenhalgh
  • Mark Longland
  • Oxford Intellectual Property Research Centre

Abstract

We construct a unique panel dataset to examine how R&D and intellectual property (IP), via patents and trade marks, increase firm productivity. Knowledge has public good characteristics of non-depletability and non-excludability. Even with IP, imitation and inventing around other firm`s products is possible, so we examine the size and duration of benefits to IP protection. If non-depletion is correct, this implies that absolute R&D, or total IP assets are important. We examine this hypothesis against the alternative of depletability, where innovative intensity relative to the size of the firm matters. The results support rapid depletability and poor ability to exclude.

Suggested Citation

  • Christine Greenhalgh & Mark Longland & Oxford Intellectual Property Research Centre, 2002. "Running to Stand Still? - Intellectual Property and Value Added in Innovating Firms," Economics Series Working Papers 134, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:134
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    References listed on IDEAS

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    5. Rachel Griffith & Stephen Redding & John Van Reenen, 2001. "Measuring the cost-effectiveness of an R&D tax credit for the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 375-399, September.
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    7. Bronwyn H. Hall, 1999. "Innovation and Market Value," Finance 9902009, University Library of Munich, Germany.
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    10. repec:bla:obuest:v:63:y:2001:i:0:p:671-96 is not listed on IDEAS
    11. C. Greenhalgh & M. Longland & D. Bosworth, 2001. "Technological Activity and Employment in a Panel of UK Firms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(3), pages 260-282, August.
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    13. Nicolas Bloom & John Van Reenen, 2000. "Patents, productivity and market value: evidence from a panel of UK firms," IFS Working Papers W00/21, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Greenhalgh, Christine & Rogers, Mark, 2006. "The value of innovation: The interaction of competition, R&D and IP," Research Policy, Elsevier, vol. 35(4), pages 562-580, May.
    2. William Griffiths & Elizabeth Webster, 2004. "The determinants of research and development and intellectual property usage among Australian Companies, 1989 to 2002," Centre for International Economic Studies Working Papers 2004-15, University of Adelaide, Centre for International Economic Studies.
    3. Mark Rogers, 2010. "R&D and productivity: using UK firm-level data to inform policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(3), pages 329-359, July.
    4. Christine Greenhalgh & Padraig Dixon, 2002. "The Economics of Intellectual Property: A Review to Identify Themes for Future Research," Economics Series Working Papers 135, University of Oxford, Department of Economics.
    5. Mark Rogers, 2006. "R&D and Productivity in the UK: evidence from firm-level data in the 1990s," Economics Series Working Papers 255, University of Oxford, Department of Economics.
    6. Sabine Visser, 2007. "R&D in Worldscan," CPB Memorandum 189.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Mainwaring, Lynn & Moore, Nigel J. & Murphy, Philip D., 2007. "A regional comparison of enterprise patent holdings: A study of British and Irish data," Research Policy, Elsevier, vol. 36(10), pages 1655-1665, December.
    8. Raquel Ortega-Argilés, 2013. "R&D, knowledge, economic growth and the transatlantic productivity gap," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 11, pages 271-302, Edward Elgar Publishing.
    9. Sabine Visser, 2007. "R&D in Worldscan," CPB Memorandum 189, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    Keywords

    intellectual property; R&D; value added; manufacturing;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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