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The Economics of Patent Backlog

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  • Zaby, Alexandra Karin
  • de Rassenfosse, Gaétan

Abstract

Patent offices around the world face massive backlogs of applications, which threatens to slow down the pace of technological progress. However, economists lack analytical tools to address the issue. This paper provides a model of patent backlog inspired from the traffic congestion literature. Inventors in the cohort are heterogeneous with respect to desired patent pendency duration and react in anticipation of the waiting time resulting from the backlog. They can accelerate or slow down pendency duration by adapting their filing strategy. We find that the backlog impedes patent examination progress by providing incentives to strategically manipulate pendency. We discuss four policy responses: increasing examination capacity; introducing a penalty fee; altering the value of pending applications; and allowing deferred examination.

Suggested Citation

  • Zaby, Alexandra Karin & de Rassenfosse, Gaétan, 2016. "The Economics of Patent Backlog," VfS Annual Conference 2016 (Augsburg): Demographic Change 145673, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145673
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    References listed on IDEAS

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    6. Joshua S. Gans & David H. Hsu & Scott Stern, 2008. "The Impact of Uncertain Intellectual Property Rights on the Market for Ideas: Evidence from Patent Grant Delays," Management Science, INFORMS, vol. 54(5), pages 982-997, May.
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    Cited by:

    1. Gaétan de Rassenfosse & Martin Kracker & Gianluca Tarasconi, 2017. "Getting Started with PATSTAT Register," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(1), pages 110-120, March.

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    More about this item

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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