Working Paper: NBER ID: w3780
Authors: Mark Schankerman
Abstract: This paper presents quantitative estimates of the private value of property rights conferred by patent protection for different technology fields and countries of ownership. The measures are derived from parametric estimation of a model of patent renewal, using a new data set on patent renewals in France during the period 1969-1987. The results show that patent protection is a significant, but not the major, source of private returns to inventive activity and that its importance varies sharply across technology fields. The paper quantifies the equivalent subsidy to R&D generated by the patent system, characterizes variations in the value of patent rights across technology fields, countries of ownership and time, and explores the determinants of those differences.
Keywords: patent protection; patent renewal; intellectual property; R&D; economic returns
JEL Codes: O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Patent protection (O34) | Private returns to inventive activity (O39) |
| Patent protection (O34) | Subsidy to R&D (O38) |
| Patent protection (O34) | Discouragement of competition at the invention stage (O31) |
| Renewal data (Y10) | Underestimate of private value of the patent system (P14) |
| Renewal decisions (D25) | Expected economic returns from patents (O34) |