A Look at Both Sides of the Coin: Investigating the Protective and the Disclosure Effect of Patenting

36 Pages Posted: 2 Aug 2013

See all articles by Diana Heger

Diana Heger

IHS Economics

Alexandra K. Zaby

Seeburg Castle University

Date Written: August 1, 2013

Abstract

This paper presents a theoretical and empirical investigation of the two basic effects of patenting: the positive effect of temporarily mitigating competition, and the negative effect of mandatory disclosure of a patent application. Providing empirical evidence for the presented theoretical results we find that (i) a technological lead and the propensity to patent are negatively related as opposed to common intuition, (ii) in industries with imperfect appropriability in case of secrecy the extent of the technological lead is positively associated with the propensity to patent, and that (iii) the intensity of patent protection mitigates the competitive threat a patentee faces.

Keywords: patenting decision, disclosure requirement, patent scope, vertical product differentiation, IPC codes

JEL Classification: L13, O14, O33, O34

Suggested Citation

Heger, Diana and Zaby, Alexandra Karin, A Look at Both Sides of the Coin: Investigating the Protective and the Disclosure Effect of Patenting (August 1, 2013). ZEW - Centre for European Economic Research Discussion Paper No. 13-048, Available at SSRN: https://ssrn.com/abstract=2304648 or http://dx.doi.org/10.2139/ssrn.2304648

Diana Heger (Contact Author)

IHS Economics ( email )

Bleichstr. 1
Frankfurt/Main
Germany

Alexandra Karin Zaby

Seeburg Castle University ( email )

Seeburgstr. 8
Seekirchen am Wallersee, 5201
Austria

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