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The propensity to patent with vertically differentiated products: An empirical investigation

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  • Heger, Diana
  • Zaby, Alexandra K.

Abstract

This paper empirically investigates a firm's propensity to patent. It thereby builds on a theoretical model on a firms' patenting decision in a market with vertically differentiated products. We deduce and empirically test several hypotheses from the theoretical results regarding patenting and rival's market entry decision presented in Zaby (2009). Our main finding is that in industries which are characterized by easy-to-use knowledge spillover, the technological lead of the inventor is reduced to such an extent that the propensity to patent increases. Furthermore, the intensity of patent protection has a delaying impact on rival's market entry.

Suggested Citation

  • Heger, Diana & Zaby, Alexandra K., 2009. "The propensity to patent with vertically differentiated products: An empirical investigation," Tübinger Diskussionsbeiträge 325, University of Tübingen, School of Business and Economics.
    • Handle: RePEc:zbw:tuedps:325
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    Cited by:

    1. Heuer, Nina, 2010. "Occupation-specific south-north migration," Tübinger Diskussionsbeiträge 328, University of Tübingen, School of Business and Economics.
    2. Jörn Kleinert & Nico Zorell, 2010. "Export-Magnification Effect of Offshoring," IAW Discussion Papers 63, Institut für Angewandte Wirtschaftsforschung (IAW).
    3. Ebrahimi Bajgani, Sahar & Saberi, Sara & Toyasaki, Fuminori, 2023. "Designing a reverse supply chain network with quality control for returned products: Strategies to mitigate free-riding effect and ensure compliance with technology licensing requirements," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    4. Frontczak, Robert, 2009. "Valuing options in Heston's stochastic volatility model: Another analytical approach," Tübinger Diskussionsbeiträge 326, University of Tübingen, School of Business and Economics.
    5. 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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    More about this item

    Keywords

    patenting decision; secrecy; disclosure requirement; patent height; vertical product differentiation;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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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