38 Pages Posted: 5 Mar 2012
Date Written: 2012
This article explores the propensity to patent in the light of the disclosure effect. Unlike earlier approaches concerned with the patenting decision, we take into account that a disclosure effect may decrease the merits of patenting by facilitating inventing around the patent for competitors. In our theoretical model, we find that the disclosure effect - contingent on the competitive environment of the inventor - possibly has substantial negative effects on the propensity to patent. An empirical investigation of the theoretical results finds support for the proposed effects.
Keywords: patenting decision, secrecy, disclosure requirement, patent breadth, horizontal product differentiation, circular city
JEL Classification: L13, L24, O34
Suggested Citation: Suggested Citation
Heger, Diana and Zaby, Alexandra K., Giving Away the Game? The Impact of the Disclosure Effect on the Patenting Decision (2012). ZEW - Centre for European Economic Research Discussion Paper No. 12-010. Available at SSRN: https://ssrn.com/abstract=2014677 or http://dx.doi.org/10.2139/ssrn.2014677