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Abstract:
Using a unique dataset of patent applications, I examine the importance of differences in patent laws, demand for the invention, and costs of patenting across countries on firms' propensity to pursue agricultural biotechnology patents in different countries. I isolate the propensity to patent, a potential negative side effect of instituting stronger patent policy, from the innovative effects of patent policy. I estimate a multivariate probit model and find that recent patent law changes in Brazil, China, and the European Patent Office do not have a significant impact on firms' propensity to patent. Rather, trade and invention-specific effects are important. However, the country fixed effects are the dominating factors in determining where firms decide to apply for a patent. The econometric model also allows exploration of changes in patent policies such as the removal of renewal fees and halving the maximum patent life. The model predicts that these changes will not have much influence in the distribution of firms' expected returns from patenting.
International patents, agricultural biotechnology, multivariate probit
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Abstract:
This paper examines the effect patent ownership has on firm variety creation in the U.S. agricultural biotechnology industry. Counts of new varieties include corn, soybean, or wheat varieties protected by either patents or plant variety protection certificates by firms in the years 1976-1999 and are modeled as a negative binomial variable. Although firms with larger patent portfolios create more varieties, firms do not experience scale economies in the production of new varieties through increased numbers of patents. Further, firms that have a greater diversity of technology in their portfolios create significantly more varieties. Meanwhile firms experience positive spillover effects from rival firms' patents, but these positive spillover effects lessen after 1990.
sequential innovation, agricultural biotechnology patents, plant variety protection
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