Do Patents Shield Disclosure or Assure Exclusivity When Transacting Technology?

19 Pages Posted: 28 Feb 2013

See all articles by Gaétan de Rassenfosse

Gaétan de Rassenfosse

Ecole Polytechnique Fédérale de Lausanne

Alfons Palangkaraya

Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology

Elizabeth Webster

Swinburne University of Technology; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Multiple version iconThere are 2 versions of this paper

Date Written: February 2013

Abstract

Patents may assist trade in technology either by protecting buyers against the expropriation of the idea by third parties (the appropriation effect) or by enabling sellers to more frankly disclose the idea during the negotiation phase (the disclosure effect). We test for the presence of both these effects using quasi-experimental matching analysis on a novel dataset of 860 technology transaction negotiations. We identify the appropriation effect by comparing the probability of successful negotiations involving a granted patent with those involving a pending patent. Similarly, we identify the disclosure effect by comparing the probability of successful negotiations involving a pending patent with those involving no patent. We find evidence for the appropriation but not the disclosure effect: technology transaction negotiations involving a granted patent instead of a pending patent are 10 per cent more likely to be successfully completed (compared with an average completion rate of approximately 80 per cent).

Keywords: O31, O34

JEL Classification: markets for technology, R&D, invention, patent, intellectual property

Suggested Citation

de Rassenfosse, Gaétan and Palangkaraya, Alfons and Webster, Elizabeth M., Do Patents Shield Disclosure or Assure Exclusivity When Transacting Technology? (February 2013). Melbourne Institute Working Paper No. 05/13, Available at SSRN: https://ssrn.com/abstract=2226729 or http://dx.doi.org/10.2139/ssrn.2226729

Gaétan De Rassenfosse

Ecole Polytechnique Fédérale de Lausanne ( email )

Station 5
Odyssea 1.04
1015 Lausanne, CH-1015
Switzerland

Alfons Palangkaraya

Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology ( email )

AGSE Building
Room 117
Hawthorne, Victoria 3121
Australia
+61392145826 (Phone)

Elizabeth M. Webster (Contact Author)

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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