How Inventor Royalty Shares Affect Patenting and Income in Portugal and Spain

IEB Working Paper N. 2015/14

46 Pages Posted: 24 Sep 2015

See all articles by Pere Arque-Castells

Pere Arque-Castells

University of Groningen (Innovation Management and Strategy)

Rui Cartaxo

ISEG (Lisbon School of Economics and Management), Universidade de Lisboa, Lisboa, Portugal

Jose Garcia-Quevedo

Barcelona Institute of Economics (IEB); University of Barcelona - Faculty of Economic Science and Business Studies

Manuel Mira Godinho

Technical University of Lisbon (UTL) - School of Economics and Management

Date Written: March 25, 2015

Abstract

Portuguese and Spanish universities have adopted well-defined royalty sharing schedules during the last fifteen years. We investigate whether these inventor royalty shares have been effective at stimulating inventors’ efforts and ultimately improving university outcomes. We base our empirical analysis on university-level data as well as on new self-collected surveys completed by inventors and Technology Transfer Offices (TTOs). Econometric evidence from the university-level dataset indicates that royalty shares have no impact on patenting or licensing income. The same result emerges from the inventors’ survey, with most respondents claiming to be largely unaffected by royalty sharing. Evidence from both the TTO and inventors’ surveys suggests that inventors do not react to royalty sharing because of the poor commercial prospects of their inventions, which means there is little income to be shared. These poor prospects appear to reflect the fact that the TTOs do not focus sufficiently on commercializing inventions and inventors are unable to produce potentially licensable inventions.

Keywords: Patents, IPR, university, knowledge transference

JEL Classification: 034, 031, I23

Suggested Citation

Arqué Castells, Pere and Cartaxo, Rui and Garcia-Quevedo, Jose and Garcia-Quevedo, Jose and Godinho, Manuel Mira, How Inventor Royalty Shares Affect Patenting and Income in Portugal and Spain (March 25, 2015). IEB Working Paper N. 2015/14, Available at SSRN: https://ssrn.com/abstract=2585080 or http://dx.doi.org/10.2139/ssrn.2585080

Pere Arqué Castells

University of Groningen (Innovation Management and Strategy) ( email )

Nettelbosje 2
Innovation Management and Strategy
Groningen, 9747 AE
Netherlands

HOME PAGE: http://www.arque-castells.com

Rui Cartaxo

ISEG (Lisbon School of Economics and Management), Universidade de Lisboa, Lisboa, Portugal ( email )

Rua Miguel Lupi, 20
Lisboa, 1249-078
Portugal

Jose Garcia-Quevedo (Contact Author)

Barcelona Institute of Economics (IEB) ( email )

Av. Diagonal 690
Barcelona, E-08034
Spain

University of Barcelona - Faculty of Economic Science and Business Studies ( email )

Barcelona
Spain

Manuel Mira Godinho

Technical University of Lisbon (UTL) - School of Economics and Management ( email )

R. Miguel Lupi, 20
Lisbon, 1200
Portugal

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