Work

Strategic Patenting and Software Innovation

Year: 2006

Type: book

Abstract: Strategic patenting is widely believed to raise the costs of innovating, especially in industries characterised by cumulative innovation. This paperstudies the effects of strategic patenting on R&D, patenting and marketvalue in the computer software industry. We focus on two key aspects:patent portfolio size which affects bargaining power in patent disputes, andthe fragmentation of patent rights (.patent thickets.) which increases thetransaction costs of enforcement. We develop a model that incorporates botheffects, together with R&D spillovers. Using panel data for the period 1980-99, we find evidence that both strategic patenting and R&D spilloversstrongly affect innovation and market value of software firms.

Source: London School of Economics and Political Science Research Online (London School of Economics and Political Science)

Authors: Michael D. Noel, Mark Schankerman

Institutions: Texas Tech University, Centre for Economic Policy Research, London School of Economics and Political Science

Language: English

Topic: Intellectual Property and Patents

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

Funders: Microsoft, Economic and Social Research Council

OpenAlex ID: W2966091806