Patents and Knowledge Diffusion: The Effect of Early Disclosure

52 Pages Posted: 30 Apr 2018 Last revised: 14 Feb 2020

See all articles by Stefano Baruffaldi

Stefano Baruffaldi

University of Bath; Max Planck Institute for Innovation and Competition

Markus Simeth

Copenhagen Business School - Department of Strategy and Innovation

Date Written: March 31, 2018

Abstract

We study how the timing of information disclosure affects the diffusion of codified technical information. On November 29, 2000, the American Inventors Protection Act (AIPA) reduced the default publication time of patents at the United States Patent and Trademark Office (USPTO) to 18 months. We analyze the effects of this change by means of a regression discontinuity design with time as an assignment variable and a complementary difference-in-differences analysis. Our study shows that information flows from patents measured by forward citations, increased. Interestingly, the degree of localization within geographic boundaries remained unchanged and technological localization even increased moderately. Moreover, the effect of early disclosure on citations from patents filed by patent attorney service firms is particularly strong. These results imply that knowledge diffusion stemming from speedier disclosure of technical information is confined to the existing attention scope and absorptive capacity of specific inventors and organizations.

Keywords: Patent Disclosure, Knowledge Diffusion, Patent Citations

JEL Classification: 031, 033, 034

Suggested Citation

Baruffaldi, Stefano and Simeth, Markus, Patents and Knowledge Diffusion: The Effect of Early Disclosure (March 31, 2018). Research Policy, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3160533 or http://dx.doi.org/10.2139/ssrn.3160533

Stefano Baruffaldi (Contact Author)

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Markus Simeth

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

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