Several recent technological standards were accompanied by patent pools?arrangements to license relevant intellectual property as a package. A key distinction made by regulators?between patents essential to a standard and patents with substitutes?has not been addressed in the theoretical...

We show that under a fixed-fee licensing contract if the licenser and the licensee bargain over the licensing fee, licensing decreases (increases) innovation by decreasing (increasing) the strategic (non-strategic) benefit from innovation. However, licensing increases innovation under a two-part...

In our model, production of a final good requires access to an excludable resource owned by an integrated firm. The quality of the resource depends on an investment by the owner and impacts the downstream demand curve. Under open access, the owner must share the resource with downstream...

We examine the impact of lost intellectual property protection on innovation, competition, acquisitions, lawsuits and employment agreements. We consider firms whose ability to protect intellectual property (IP) using patents is weakened following the Alice Corp. vs. CLS Bank International...

We provide evidence that over the past 30 years, U.S. firms have expanded their scope of operations. Increases in scope and scale were achieved largely without increasing traditional operating segments. Scope expansion significantly increases valuation and is primarily realized through...

A major policy issue in standard setting is that patents that are ex-ante not that important may, by being included into the standard, become standard-essential patents (SEPs). In an attempt to curb the monopoly power that they create, most standard-setting organizations require the owners of...

We explore heterogeneities in the determinants of innovating firms’ decisions to engage in R&D cooperation, differentiating between three types of cooperation partners: suppliers and customers (vertical cooperation), competitors (horizontal cooperation), and universities and research...

We investigate incidence and evolution of patent thickets. Our empirical analysis is based on a theoretical model of patenting in complex and discrete technologies. The model captures how competition for patent portfolios and complementarity of patents affect patenting incentives. We show that...

In this Paper we carefully link knowledge flows to and from a firm’s innovation process with this firm’s investment decisions. Three types of investments are considered: investments in applied research, investments in basic research, and investments in intellectual property protection. Only...

This Paper presents an econometric analysis of firm and industry characteristics conducive to cooperation with universities, using Community Innovation Survey data for Belgium. We find that large firms are more likely to have cooperative agreements with universities. These agreements are formed...