From a firm’s perspective two competing forces are driving the decision to invest in innovation. On the one hand …, innovative performance is an important driver of profitability and growth. On the other hand, investments in innovation suffer … firms may protect their inventions by means of intellectual property rights, such as patents. By taking out a patent …

innovation. We utilize data on U.S. patents and their inventors linked to Finnish employer-employee data to estimate the effect … of patenting on earnings. Inventors get a temporary 3% wage increase in the year of the patent grant. In addition, there … is a 4-5% increase in earnings four years after the patent grant, which remains there for at least the following two …

shows that patent race winners do significantly more follow-on innovation, and the follow-on research that they do is more …Competition between firms to invent and patent an idea, or “patent racing,” has been much discussed in theory, but … seldom analyzed empirically. This article introduces an empirical way to identify patent races, and provides the first broad …

or output of a knowledge production function. We suggest that the productivity of research in patent production functions … to patentable knowledge, and development happens after the initial research phase that may have led to a patent. Instead …

technologies or sectors (inter-sectoral spillovers), or at the international level. We find that innovation is strongly driven by … knowledge spillovers, especially those occurring at the national level. Wind and solar technologies exhibit distinct innovation … only influential in the case of wind technology. We also find evidence that public R&D stimulates innovation, particularly …

In this paper we look at patents as alternative to trade secrets. We disentangle the disclosure motive for patent … protection from the traditional reward motive by adjusting the level of patent protection so as to make the innovator just … indifferent between patenting and keeping the innovation secret. Thus, we keep the reward (expected profits) to the innovator …

The Federal Trade Commission's 2003 innovation report revealed an interesting fact: the pharmaceutical industry is … largely satisfied with today's patent system while the electronics, software and Internet industries are not. This article … inventive process for pharmaceuticals. Our patent system, however, has no analogous requirement for the other fields. In them …

We consider mergers in an innovation contest between n firms in the presence of synergetic effects. We assume that a …