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Technology entry in the presence of patent thickets

Author: Bronwyn H Hall; Christian Helmers; Georg von Graevenitz; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2015.
Series: Working paper series (National Bureau of Economic Research), no. 21455.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold-up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Bronwyn H Hall; Christian Helmers; Georg von Graevenitz; National Bureau of Economic Research,
OCLC Number: 919618114
Notes: "August 2015"
Description: 1 online resource (33, 6 pages, 9 unnumbered pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 21455.
Responsibility: Bronwyn H. Hall, Christian Helmers, Georg von Graevenitz.

Abstract:

We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold-up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to less entry into technologies regardless of a firm's size.

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