R&D Collaboration with Uncertain Intellectual Property Rights
Centre for European Economic Research (ZEW); Catholic University of Leuven (KUL)
Universite du Luxembourg; Catholic University of Leuven (KUL); Centre for European Economic Research (ZEW)
Copenhagen Business School - Department of Economics
January 15, 2011
ZEW - Centre for European Economic Research Discussion Paper No. 11-010
Patent pendencies create uncertainty in research and development (R&D) collaboration agreements, resulting in a threat of expropriation of unprotected knowledge by potential partners, reduced bargaining power and enhanced search costs. In this paper, we show that - depending of the type of partner - uncertain intellectual property rights (IPR) lead to reduced collaboration between firms and may hinder the production of knowledge. This has implications for technology policy as R&D collaborations are exempt from anti-trust legislation in order to increase R&D in the economy. We argue that a functional IPR system is needed for successful utilization of this policy.
Number of Pages in PDF File: 35
Keywords: R&D Collaboration, Intellectual Property, Uncertainty, Patents
JEL Classification: O31, O38working papers series
Date posted: February 12, 2011
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