The Impact of the Patent System on the Timing of Technology Licensing in China: Theory and Evidence from Patent Disclosure and Grant Delays

Abstract

This paper explores the effects of two functions of the patent system–patent disclosure and patent granting–on the timing of technology licensing in China. We find that patent disclosure delay positively affects the licensing probability before the disclosure date and negatively affects the licensing probability between the patent disclosure date and the grant date, and it has an inverted U-shaped relationship with the licensing probability after the grant date. In contrast, patent grant delay positively affects the licensing probability between the patent disclosure date and the grant date and negatively affects the licensing probability after the grant date.