On the Price Elasticity of Demand for Patents

21 Pages Posted: 18 Dec 2008

See all articles by Gaétan de Rassenfosse

Gaétan de Rassenfosse

École Polytechnique Fédérale de Lausanne

Bruno van Pottelsberghe de la Potterie

Free University of Brussels - Solvay Business School; Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2008

Abstract

This paper investigates whether patent fee policies are a potential factor underlying the boom in patent applications observed in major patent offices. We provide the first panel-based evidence suggesting that fees affect the demand for patents in three major patent offices (EPO, USPTO and JPO), with a price elasticity of about -0.4 (similar to that of the residential demand for oil or water). The laxity of fee policies adopted by patent offices over the past 25 years therefore contributed, to a significant extent, to the rising propensity to patent observed since the mid-nineties. This is especially true at the European Patent Office, which has dramatically decreased its fees since the mid-1990s.

Keywords: patent cost, patent systems, patenting fees, price elasticity, propensity to patent

JEL Classification: O30, O31, O34, O38, O58

Suggested Citation

de Rassenfosse, Gaétan and van Pottelsberghe de la Potterie, Bruno, On the Price Elasticity of Demand for Patents (November 2008). CEPR Discussion Paper No. DP7029, Available at SSRN: https://ssrn.com/abstract=1311153

Gaétan De Rassenfosse

École Polytechnique Fédérale de Lausanne ( email )

Station 5
Odyssea 1.04
1015 Lausanne, CH-1015
Switzerland

Bruno Van Pottelsberghe de la Potterie (Contact Author)

Free University of Brussels - Solvay Business School

50 Avenue Roosevelt
Brussels 1050
Belgium

Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA) ( email )

Ave. Franklin D Roosevelt 50
Brussels, B-1050
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
5,556
PlumX Metrics