Patent Enforcement and Subsequent Innovation

64 Pages Posted: 27 Dec 2021 Last revised: 10 Jan 2022

See all articles by Marek Giebel

Marek Giebel

Copenhagen Business School - Department of Economics

Date Written: December 23, 2021

Abstract

How does patent enforcement affect subsequent innovation? I exploit patent infringement litigation in the United States to analyze the effect of patent enforcement on cumulative innovation. The results imply that subsequent innovation increase after a case is filed in a court. While there is a strong increase during the litigation period, the relative effect size decreases in the years following the closure of the case. Further results imply that signals about the value of the patent and reductions in asymmetric information are particular driver of the increase in follow-on innovation. Although there is a general positive effect, subsequent innovation show a low degree of novelty and are close to the litigated patents in terms of technological proximity and general similarity.

Keywords: Patent enforcement, Patent infringement litigation, Subsequent innovation, Patent citations, Intellectual property rights

JEL Classification: K11, K41, L24, O30, O31, O32, O34

Suggested Citation

Giebel, Marek, Patent Enforcement and Subsequent Innovation (December 23, 2021). Available at SSRN: https://ssrn.com/abstract=3992810 or http://dx.doi.org/10.2139/ssrn.3992810

Marek Giebel (Contact Author)

Copenhagen Business School - Department of Economics ( email )

Denmark

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