Estimating the Gains from Trade in the Market for Innovation: Evidence from the Transfer of Patents
Carlos J. Serrano
Universitat Pompeu Fabra, Barcelona GSE; University of Toronto - Rotman School of Management, RIIB; National Bureau of Economic Research (NBER)
July 31, 2011
The "market for innovation" - the sale and licensing of patents - is an often discussed source of incentives to invest in R&D. This article presents and estimates a model of the transfer and renewal of patents that, under some assumptions, allows us to quantify the gains resulting from the transfer of patents in the market for innovation. The gains from trade measure the benefits of reallocating the ownership of a patent from the original inventor to a new owner for whom the patent has a higher value. In addition, we study the effect that lowering the costs of technology transfer has on the proportion of patents traded and the gains from trade.
Number of Pages in PDF File: 46
Keywords: Market for Technology, Gains from Trade, Transfer of Patents, Patent
JEL Classification: L24, O32, O34working papers series
Date posted: October 5, 2011
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