Introduction and overview of the symposium issue: innovations and intellectual property values

Abstract

The eight papers included in this symposium issue are revised versions of presentations made at the AEA (‘‘Association d’Econometrie Appliquee’’) Conference on ‘‘Innovations and Intellectual Property Values’’ that took place in Paris on October 20–21, 2005. The eight papers have one thing in common. They all use micro data on intangibles or technology indicators, but of a very different kind (licensing-out contracts, royalty payments, innovation activities, patent renewal fees, patent citations, settlements in infringement suits, and R&D spillovers), showing the wide scope of the economics of innovation and intellectual property values and the richness of the data that are used in empirical studies in this area. Five papers deal directly with the evaluation or the effects of intellectual property rights. Two papers, by Sadao Nagaoka and by Ryuhei Wakasugi and Banri Ito, examine whether the strength of intellectual property rights ease technology transfer, in particular from developed to developing countries. Two papers, by Charlotta Gronqvist and by Emanuele Bacchiocchi and Fabio Montobbio, estimate the value of patents. The former estimates the value and the rate of decay in the revenues of patents using patent renewal data. The latter estimates the value of patents using patent citation data. One paper, by Katrin Cremers, examines one aspect of patent infringement suits, namely the determinants of the chances of reaching an early settlement before a final judgement is rendered by the patent courts. Four papers deal with technology transfer in a broad sense. Three papers estimate the extent and the channels of knowledge spillovers across firms (spatial proximity or technological proximity in Luigi Aldieri and Michele Cincera, mobility of inventors in Karin Hoisl, and patent citations in Emanuele Bacchiocchi and Fabio Montobbio). One paper, by Bettina Peters, evaluates the temporal dimension of knowledge transmission, namely the persistence of innovation within a firm. All papers have policy implications. The issue of strength of patent protection is of central importance to the ultimate success of the TRIPS (Trade Related Intellectual Property Rights) agreements in the present free trade negotiations. As Charlotta Gronqvist mentions, her results have at least three implications for policy making. First, because of