Firm Size and the Use of Intellectual Property Rights

12 Pages Posted: 8 May 2006

See all articles by Paul H. Jensen

Paul H. Jensen

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Elizabeth Webster

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

Abstract

Innovation markets are often characterised by market failure because inventions typically incur high fixed costs relative to marginal costs and their intellectual capital is non-excludable. Intellectual property (IP) rights may attenuate this problem by providing legal recourse for firms to stop imitation by rivals. As IP rights are costly to acquire and enforce, it is often argued that SMEs are disadvantaged in their ability to utilise IP rights. This paper examines the intensity of IP usage by firm size and finds that SMEs actually have higher rates of patent, trade mark and design usage once industry effects are controlled for.

Suggested Citation

Jensen, Paul H. and Webster, Elizabeth M., Firm Size and the Use of Intellectual Property Rights. Economic Record, Vol. 82, No. 256, pp. 44-55, March 2006. Available at SSRN: https://ssrn.com/abstract=889138 or http://dx.doi.org/10.1111/j.1475-4932.2006.00292.x

Paul H. Jensen

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

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

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 of Applied Economic and Social Research ( email )

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

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