I show that mature patent-practicing firms respond to windfall profits derived from exogenously extended patent protection time by engaging in external patent acquisitions that diversify their patent portfolios into new technologies. By exploiting the random timing of patent term expiry dates...

In theory, innovation processes lie behind the evolution of national systems as they create interacting dynamics among organisations. Institutions and policies are considered means for influencing these interactive dynamics, such as shifting innovative focus from traditional to environmentally...