Seminar  |  23.09.2020 | 17:00  –  18:15

Innovation & Entrepreneurship Seminar: The Dark Side of Patents – Effects of Strategic Patenting on Firms and Their Peers

Maria Kurakina (University of Utah)

Seminare finden derzeit im Online-Format statt (siehe Seminarseite).

This paper analyses the effect of strategic patenting on firm and competitor performance, productivity, innovative output and market concentration. Using a novel definition of strategic patenting, this paper finds a positive effect of strategic patenting on market concentration. The results for the patentee show a positive effect of profit growth, and positive but significantly smaller contribution of strategic patenting to total factor productivity compared to novel technological patents. In contrast, peers suffer from a decrease in total factor productivity, innovative output and both profit and sales growth following strategic patenting by the focal firm. These findings suggest a conflict between patent policies designed to promote innovation while still providing incentives for the firms to capture market share and defend monopolistic positions.

Ansprechpartner: David Heller