Abstract

http://ssrn.com/abstract=895361
 
 

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Patents and Business Models for Software Firms


John R. Allison


McCombs School of Busniess, University of Texas

Abe Dunn


University of Texas at Austin - Department of Economics

Ronald J. Mann


Columbia University - Law School

March 24, 2006

U of Texas Law, Law and Econ Research Paper No. 77

Abstract:     
We analyze the relation between patents and the different business models available to firms in the software industry. The paper builds on Cusumano's work defining the differences among firms that sell products, those that provide services, and the hybrid firms that fall between those polar categories. Combining data from five years of Software Magazine's Software 500 with data about the patenting practices of those software firms, we analyze the relation between the share of revenues derived from product sales and the firm's patenting practices. Accounting for size, R&D intensity, and sector-specific effects, the paper finds a robust positive correlation between product-based business models and patenting rates. We also present in this draft preliminary results suggesting that there is no significant relation between patenting practices and the extent to which the firm's revenues are derived from software products and services, as opposed to hardware or other lines of business.

Number of Pages in PDF File: 39

Keywords: patent, business, software, IP, model

JEL Classification: K20, K29, L10

working papers series


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Date posted: April 11, 2006  

Suggested Citation

Allison, John R. and Dunn, Abe and Mann, Ronald J., Patents and Business Models for Software Firms (March 24, 2006). U of Texas Law, Law and Econ Research Paper No. 77. Available at SSRN: http://ssrn.com/abstract=895361 or http://dx.doi.org/10.2139/ssrn.895361

Contact Information

John R. Allison
McCombs School of Busniess, University of Texas ( email )
CBA 5.202
University of Texas at Austin
Austin, TX 78712
United States
Abe Dunn
University of Texas at Austin - Department of Economics ( email )
Austin, TX 78712
United States
Ronald J. Mann (Contact Author)
Columbia University - Law School ( email )
435 West 116th Street
New York, NY 10025
United States
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