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In terms of the number of its patent applications, in 2012 China has emerged as the country with the largest IP office in the world. The performance of the Chinese IP system is thus increasingly in the spotlight. While significant economic studies have been devoted to the rise of domestic patenting in China, hardly any study has focused on Chinese patent filings in foreign countries. This paper analyzes Chinese patenting abroad by using WIPO’s foreign-oriented patent family dataset and a respective enterprise questionnaire. It finds that by the turn of the century China emerged as major actor in terms of international patenting. While this is changing rapidly, the share of Chinese patents which get filed abroad is still a fraction of total patents filed at home and most patents still also only target one foreign IP office. Chinese foreign-oriented patent families are concentrated in a few technology fields, notably those related to the ICT sector, “Digital communication”, followed by “Computer technology”, “Nanotechnology”, and similar fields. A few Chinese firms are responsible for a large share of total Chinese patents filed abroad. The paper however also highlights that some of these trends are changing rapidly towards more intensive and broad-based filing abroad. Initial results from a selective firm survey also show a shift from the desire to protect technologies abroad to more strategic motives: (i) the desire to build patent portfolios avoiding litigation, (ii) facilitating collaboration with other firms, but also to (iii) license and sell IP abroad, and to (iv) further the firm’s reputation as true innovator.

For most of the post-war period developing countries have been told that relying on licensing for technology transfer is likely to yield disappointing results. However, this view of licensing has come a full circle as technology services trade has boomed since the 1990s. We outline the main trends in the growth of disembodied technology trade vis-a-vis international licensing and the trade in R&D and technical services. We show that there is considerable heterogeneity across countries in the form of technology trade that countries specialize in and also suggest these are related to underlying appropriability conditions and IPR regimes.

We study how the strength of public intellectual property rights (IPR) protection against software piracy (copyright protection) affects private IPR protection (that software developers may themselves undertake to protect their IPR). There are two software developers that offer a product variety of differing (exogenously given) quality and compete in prices for heterogeneous users, who make a choice whether to buy a legal version, use an illegal copy (if they can), or not use a product at all. Using an illegal version violates IPR and is thus punishable when disclosed. If a developer considers the level of piracy as high, he can introduce a form of physical protection for his software or digital product. The main aim of our analysis is to study how the level and the change of public IPR protection affect the pricing and IPR protection strategies of software developers. In particular, we are interested in establishing when the two forms of IPR protection (public and private) are complements to each other, when are they substitutes and when a change in public IPR has no impact on private IPR protection.

This article presents the results of an analysis of the patent trading flows of small and large firms and the determinants of these firm's patent sale and acquisition decisions. We also examine whether these transactions lead to an excessive concentration of patent rights. We show that small firms disproportionately sell and acquire more patents than large firms, and find no evidence that patent trading brings about a significant concentration of patent rights in the hands of large firms. We find that the match between new patented innovations and the original inventor's patent portfolio plays an important role in how successful firms are at generating value from their patents, and in the decision to sell a patent. And among the traded patents, we show that patent acquisitions respond to complementarities between the acquired patented innovation and the buyer's technological capabilities to adopt it. Our empirical analysis uses a new, comprehensive data set that matches information on patent trades and the identity of patent owners over a patent's lifetime.

We analyze the impact of decreases in available lending resources on quantitative and qualita- tive dimensions of firms’ patenting activities. We thereby make use of the European Banking Authority?s capital exercise to carve out the causal effect of bank lending on firm innovation. In order to do so we combine various datasets to derive information on firms’ financials, their patenting behaviors, as well as their relationships with their lenders. Building on this self- generated dataset, we provide support for the “less finance, less innovation” view. At the same time, we show that lower available financial resources for firms lead to improvement in the qualitative dimensions of their patents. Hence, we carve out a “less finance, less but better innovation” pattern.

The UK's business R&D (BERD) to GDP ratio is low compared to other leading economies, and the ratio has slowly declined over the 1990s. This paper uses data on large UK firms to analyse the link between R&D and productivity over the 1989-2000 period. Using a production function approach, and a sample of up to 719 firms, various different samples and estimators are used to assess the elasticity of, and rate of return to, R&D. The results indicate that UK returns to R&D are similar to returns in other leading economies. Furthermore, the returns to R&D have been relatively stable over the 1990s. There is no evidence to suggest that stock market listed firms, or firms with higher past profitability, have significantly different returns. Overall, the results suggest that the low BERD to GDP ratio in the UK is unlikely to be due to direct financial or human capital constraints (as these imply finding relatively high rates of return). Instead, the low BERD to GDP ratio appears to reflect low (perceived) opportunities by firms and the inability of firms to manage R&D to generate value. The paper provides some, tentative evidence, that high rates of competition in the science-based sector are associated with low returns to R&D.

This paper builds a dynamic stochastic general equilibrium (DSGE) model of endogenous growth that is capable of generating substantial degrees of endogenous persistence in productivity. When products go out of patent protection, the rush of entry into their production destroys incentives for process improvements. Consequently, old production processes are enshrined in industries producing non-protected products, resulting in aggregate productivity persistence. Our model also generates sizeable delayed movements in productivity in response to preference shocks, providing a form of endogenous news shock. Finally, if we calibrate our model to match a high aggregate mark-up then we can replicate the negative response of hours to a positive technology shock, even without the inclusion of any frictions.

This paper begins by surveying recent economic studies of the relationships between technology transfer, intellectual property, innovation and diffusion in emerging countries. It applies this literature to the Indian case. India is a potentially useful case study for several reasons. India has recently been experiencing rapid growth and has several high technology sectors staffed by an absolutely large and highly educated middle class. At the same time an even larger share of its very big population is still working in low productivity agriculture and many of these people are living in extreme poverty. To reduce poverty and improve agricultural productivity India will need to create jobs in labour intensive production and distribution sectors to employ its vast army of unskillled workers. The second part of the paper outlines how industry structure and innovative performance have been progressing in India following the economic reforms of the early 90s and the changes to intellectual property law occasioned by the TRIPS agreement and membership of the World Trade Organisation. In the third section the focus turns to recent science, technology and innovation policy in India. A study of the country's potential for innovation by the World Bank in 2007 argued that India must proceed on two fronts. In addition to considering how India's growth prospects can be enhanced by world leading innovations, this volume placed great emphasis on inclusive innovation. This may involve mainly the diffusion and absorption of existing knowledge, but is designed to improve the lot of the poor. The World Bank report proposed a number of new policy directions aimed at speeding up innovation and technology diffusion in India. We attempt to record what changes have been made to innovation policy, foreign direct investment policy and diffusion policy in India in recent years and assess whether these are likely to be effective.

One of the most controversial questions in current competition policy is when, if ever, should competition law require a firm with market power to share its property, notably intellectual property, with its rivals? And if supply is required, on what terms? These questions are discussed with reference to recent law cases including the EC Microsoft judgment of 2007 and the US linkLine case of 2009. The analysis focuses on whether competition law and regulation are complements or substitutes, and on incentives for investment and (sequential) innovation.

Розглянуто трансформацію державної системи правової охорони інтелектуальної власності в Україні, описано її перехід від трирівневої до дворівневої структури, надано характеристику основних державних органів, що здійснювали діяльність у сфері охорони інтелектуальної власності за трирівневої структури та характеристику основних державних органів, що здійснюють діяльність у сфері охорони інтелектуальної власності уже за дворівневої структури, а також оцінено перспективи подальшого розвитку та можливі шляхи вдосконалення державної системи правової охорони інтелектуальної власності в Україні. Визначено, що при трирівневій структурі, основними органами, які регулювали діяльність у сфері інтелектуальної власності були Міністерство економічного розвитку та торгівлі, Державна служба інтелектуальної власності України, а також спеціальні державні заклади, зокрема: Український інститут інтелектуальної власності, Інтелзахист та Українське агентство з авторських та суміжних прав. Відповідно, за дворівневої структури, основним органом регулювання діяльності в галузі інтелектуальної власності так і залишилось Міністерство економічного розвитку та торгівлі і ключову роль стали виконувати також Національний офіс інтелектуальної власності, спільно із Українським інститутом інтелектуальної власності, які зараз, по своїй суті, є дублюючими один одного органами. Було визначено, що реформування державної правової системи охорони інтелектуальної власності в Україні триває донині, при цьому найоптимальнішим шляхом вдосконалення даної системи має стати здійснення детального аналізу функціонування сегменту колективного управління авторськими і суміжними правами, упровадження в нашій країні контролю, щодо захисту авторського та суміжного прав у мережі Інтернет. Важливим та першочерговим завданням має також стати реформування законодавчої бази у сфері промислової власності та сфері охорони інтелектуальної власності. Реформування, в свою чергу, має відбуватися із врахуванням міжнародного досвіду, зокрема досвіду США та країн ЄС. This article examines the transformation of the state system of legal protection of intellectual property, describes its transition from three-tier to two-tier structure, describes the main state bodies involved in the protection of intellectual property in the three-tier structure and describes the characteristics of the main state bodies performing the activity in the field of protection intellectual property already in the two-tier structure, as well as assesses the prospects for further development and all the possible ways of improvement of the state system of legal protection of intellectual property in Ukraine. It was determined that under the three-tier structure, the main bodies regulating activities in the field of intellectual property were the Ministry of Economic Development and Trade, State Intellectual Property Service of Ukraine, as well as special state institutions, such as: Ukrainian Institute of Intellectual Property, Intellectual Property and Ukrainian Agency for Copyright related rights. Accordingly, in the two-tier structure, the Ministry of Economic Development and Trade remained the main body for regulating intellectual property activity, and the National Intellectual Property Office, together with the Ukrainian Institute of Intellectual Property, which are now essentially a duplicate, have also played a key role. It was determined that the reform of the state legal system of protection of intellectual property in Ukraine is still ongoing, and the most optimal way to improve this system is to carry out a detailed analysis of the functioning of the collective management segment of copyright and related rights, implementation in our country of control, protection of copyright and related rights in Internet. An important and overriding task is also to reform the legislative framework in the field of industrial property and intellectual property protection. The reform, in turn, must take into account international experience, in particular the experience of the USA and the EU countries.

This paper examines two dimensions of the software piracy-development nexus to complement existing formal literature. It empirically assesses the incidence of piracy on the Human Development Index (HDI) and its constituents and then the instrumentality of Intellectual Property Right (IPR) treaties (laws) in the linkages. An instrumental variable or Two-stage least squares is applied on panel of 11 African countries with data for the period 2000-2010. Three main findings are established: (1) software piracy has a negative incidence on inequality adjusted human development; (2) the unappealing effect of piracy on the HDI is fuelled by per capita economic prosperity and life expectancy components of human emancipation; (3) software piracy increases literacy. Two major policy implications have been retained from the findings. Firstly, adherence to international IPRs protection treaties (laws) may not impede per capita economic prosperity and could improve life-expectancy. Secondly, adoption of tight IPRs regimes may negatively affect human development by diminishing the literacy rate and restricting diffusion of knowledge.

Brands are ever more visible and central to the functioning of modern economies. Firms, institutions, government and non-governmental actors as part of civil society spend an everincreasing amount on the right branding of their organization, and/or their products. The demand for trademarks has thus grown substantially. Mirroring this trend, “Markets for brands” - as defined in this paper - play an important but underappreciated economic role in today’s global economy. Trademarks and brands are increasingly the object of commercial transactions; they can be purchased, franchised or licensed. The ability to use Market for Brands allows companies to diversify their business, to access competences, and to generate new revenues without substantial investments. In recent years, firms in emerging economies have been more active users of these markets by licensing or acquiring established global brands. Yet, despite their apparent importance, little is known about the size of these markets, and how relevant these are for firms in countries with different stages of development. This paper first defines and provides a taxonomy for different brand markets. Second, it analyzes the economic rationale of such markets. Finally, it provides evidence on their magnitude, also assessing their relative importance of the different brand-related transaction types in developed and emerging economies alike.

This paper studies the incentives that developing countries have to protect intellectual properties rights (IPR). On the one hand, free-riding on rich countries technology reduces their investment cost in R&D. On the other hand, firm that violates IPR cannot legally export in a country that enforces them. Moreover free-riders cannot prevent others to copy their own innovation. The analysis predicts that the willingness to enforce IPR is U-shaped in a country GDP: small/poor countries are willing to respect IPR to access advanced economies markets, while large emerging countries are more reluctant to do so because technological transfers from the West boost their production capacity and their domestic markets. Universal enforcement of IPR yields a higher level of innovation and global welfare only if the developing country does not innovate. A partial enforcement of IPR, strict in the north and lax in the south, is socially better if the developing country invests enough in R&D and if its interior market is large. The theoretical predictions of the model are tested with the help of panel data. The empirical analysis supports the theoretical results.

The incentives to conduct basic or applied research play a central role for economic growth. How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with skill acquisition. We focus on two issues (a) the over-protection vs. the under-protection of intellectual property rights in basic research; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators. We show that the dynamic general equilibrium interations may seriously mislead the empirical assessment of the growth effects of IPR policy: stronger protection of upstream innovation always looks bad in the short- and possibly medium-run. We argue that in a common law system an explictly dynamic macroeconomic analysis is appropriate. We also provide a simple "rule of thumb" indicator of the basic researcher bargaining power.

International audience; In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction.

We use an extended version of the well-established Crepon, Duguet and Mairesse model (1998) to model the relationship between appropriability mechanisms, innovation and firm-level productivity. We enrich this model in several ways. First, we consider different types of innovation spending and study the differences in estimates when innovation spending (rather than R&D spending) is used to predict innovation in the CDM model. Second, we assume that a firm simultaneously innovates and chooses among different appropriability methods (formal or informal) to protect the innovation. Finally, in the third stage, we estimate the impact of the innovation output conditional on the choice of appropriability mechanisms on firms' productivity. We find that firms that innovate and rate formal methods for the protection of Intellectual Property (IP) highly are more productive than other firms, but that the same does not hold in the case of informal methods for the protection of a firm's IP, except possibly for large firms as opposed to SMEs. We also find that this result is strongest for firms in the services, trade, and utility sectors, and negative in the manufacturing sector.

This paper provides a framework with which to analyze organizational forms in the knowledge economy. We focus on an important trade-off facing modern firms: firms can acquire the property of all the innovations developed by their employees and can greatly increase their profits, yet this type of private intellectual property rights regime can discourage the innovative effort of the very same workers. Allowing workers to carry their knowledge outside the firm eliminates this disincentive. Hence, strategic complementarities may exist between innovative partners and a disclosure driven intellectual property rights regime, and passive employees and a private intellectual property rights regime. An evolutionary game theoretic model demonstrates these strategic complementarities and shows when economies tend towards disclosure driven or private intellectual property rights regimes.

Firms from emerging countries such as Brazil, India, and China (BIC) are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze BIC firms' cross-border inventions with European Union (EU-27) actors, during the period 1990-2012. Our results suggest that cross-border inventions represent an opportunity for BIC firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions. This paper contributes to the understanding of the catching up process by emerging country firms, and offers some policy recommendations.

none 2 si Inventors and organizational assets are inputs of inventive activities which are often provided at a global scale, where countries might specialize in the provision of one or the other type of inputs. We introduce a new patent-based metric, the ‘inventor balance’, to quantify this type of functional specialization, which we discover to be considerable, and we propose a conceptual framework to explain it. We observe a progressive ‘decoupling’ of national sub-systems providing respectively inventors and organizational assets. Moreover, we find that countries with a high level of innovativeness relative to their economic development, high technological specialization, and strong individualistic cultural traits, contribute relatively more inventors than organizations to the global production of inventions. mixed Picci, Lucio; Savorelli, Luca Picci, Lucio; Savorelli, Luca

This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while commandand-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.

With the progress of information and communication technologies, the cost and efforts to remotely exchange information have drastically fallen. It has created new opportunities to leverage comparative advantages by reorganizing value chains along the geographic dimension and by reconsidering the organizational boundaries of the firm (i.e. the governance model of operations). However the global disaggregation of the firm’s processes tends to increase the dispersion of firm’s proprietary information and knowledge across locations and intermediate producers. Firms are potentially exposed to higher levels of misappropriation hazard and forced to elaborate protection strategies to mitigate that risk. This study shows that firms adjust the fragmentation of activities entrusted to foreign services production units to adapt their information and knowledge protection strategy to the availability of strong legal protection (from the local institutions) or internal control mechanisms. We hypothesize and empirically support that, when the above mechanisms are not available, firms use the substitute protection mechanism of fragmenting global business processes across multiple services production units. Through their capabilities to integrate the multiple fragments that compose production processes, firms can exploit the complementarities between these fragments while reducing the misappropriation hazard of individual fragments. We find also that the propensity to turn to this alternative protection mechanism increases with firm’s host country specific experience and with the alternative value of the proprietary information.

In this paper we develop a theory of patenting in which a firm preserves its reputation by only applying for a patent whenever a truly patentable idea has been generated. Firms have a short-run incentive to deviate and receive additional rents from unworthy pending patents, as well as potential rents from PTO mistakes in granting patents. We provide conditions for reputation to be preserved in equilibrium and analyze which market environments are favorable for such an equilibrium to exist. In particular, we analyze the merits of different patent systems.

In Transylvania, buildings with a high quality architecture have been constructed along the centuries. The purpose of the present study is to document the built heritage of Transylvania, particularly the Jewish buildings and especially those that had been neglected over the last years. The article is the continuation of the article about the Jewish architecture in Transylvania, with a case study about the Jewish girls’ school in Satu Mare. The research domain is interdisciplinary because it links History, Architecture, Art history and the problem of Globalization as well. The niche in this domain remains the fact that the buildings are not identified, rehabilitated, or promoted. Previous studies have mostly focused on synagogues and prayer houses. Most of the other precious buildings have been left aside. This study offers a new approach to change the point of view of the people who live in Romania, and helps them appreciate the heritage they have received.

This paper surveys empirical studies employing trade mark data that exist in the economic literature to date. In the introductory section we summarise the theory of trade marks. Section 2 documents the use of trade marks by firms of different size and industry and by firms in several advanced countries, including Australia, the UK, and the USA. Section 3 reviews various attempts to gauge the function of a trade mark as an indicator of innovation and product differentiation. Section 4 surveys studies that have demonstrated firms' incentives to use trade marks, including transferring information to consumers, realising synergies between different types of intellectual property rights, strategies to raise rivals' costs and using trade mark portfolios as debt collateral. In Section 5, we provide an overview of the importance of trade-mark-use for firm survival and the association of trade marks with several dimensions of firm performance, including productivity and their ability to generate well-paid ...

This paper is an exercise in comparative institutional analysis, asking what kinds of arrangements most facilitate innovation. After identifying pervasive market failures in innovation, it explains why those associated with the Nordic model may be particularly conducive to innovation, and demonstrates that, in general, the optimal policies of the leader should differ from that of followers, but that both leaders and followers can benefit from active government policies (like industrial policies, public investments, and systems of social protection), not only leading to more innovation, but ensuring that more innovative activity is directed in ways that lead to the enhancement of living standards. It concludes by constructing a simple model in which knowledge flows slowly across national borders but moves easily within borders. We show there is a leadership-followership equilibrium, in which some countries are leaders, others are followers. Contrary to Solow's analysis, there need not be convergence. Focusing on technological progress that is a result of learning by doing, where learning occurs within the industrial sector but spills over to other sectors, we demonstrate the optimality of policies to expand the industrial sector beyond that which prevails in competitive equilibrium.

The purpose of this paper is to show how trust as an organizational value contributes to employee competence utilization in the case of innovation capability. Thus, it is the objective of this paper to analyze the positive impacts, but also potential limits of trust in business management. The research paper uses two different quantitative empirical studies drawn from German and Austrian mid-sized companies to empirically test this interrelation. As a result, the paper determines particular aspects of trust such as accountability, shared norms and the ability to take responsibility to be interrelated with the usage of employee competences and underlines a positive connection between product innovation performance and trust. However, the trust concept needs enriching elements to be balanced towards a feeling of mutual reliance and support creativity instead; inclusions of bridging social capital, elements of distrust and a pioneering spirit are to be mentioned here.

Intellectual capital is a collaboration and mutual learning within and between undertakings which ensures their long-term successful business association. Intellectual capital is an attempt assigning financial value of knowledge within a particular economic entity. This paper will present ways of measuring intellectual capital, ie. valorization techniques of intangible assets. The increased interest in the measurement of intangible assets is the result of increasing enterprise value which is not shown in the accounting statements and therefore creates the wrong information . The biggest difference between market and book value recorded just high-tech enterprises and industries where intensive knowledge is invested in intangible assets such as research and development and brand. Therefore, one of the main challenges for management is creating conditions for successful generation of intangible value ( knowledge , services , experience , benefits , speed, quality and reputation ) and its transformation into tangible forms ( income , profits , value added, stocks , market value ).

One of the lesser-known, but important, features of recent Preferential Trade Agreements (PTAs) is the specification of rigorous standards of protection for intellectual property rights (IPRs). This paper reviews the extent of these policies in PTAs negotiated by the United States and the European Union with developing countries. Economists and scholars of international relations have paid virtually no analytical attention to the reasons for these changes, nor have they studied their socioeconomic impacts. Several areas are discussed in which detailed analysis would do much to advance our understanding of this important trend. (Jedna z menej známych, avšak dôležitých čŕt súčasných preferenčných obchodných dohôd je špecifikácia presných štandardov ochrany práv duševného vlastníctva. Predkladaný článok zhodnocuje rozsah týchto politík na príklade preferenčných obchodných dohôd vynegociovaných Spojenými štátmi americkými a Európskou úniou s rozvojovými štátmi. Ekonómovia a experti v oblasti medzinárodných vzťahov nevenovali dosiaľ dôvodom súčasných zmien prakticky žiadnu analytickú pozornosť, rovnako ako neštudovali ani ich socioekonomické dôsledky. Článok sa venuje niekoľkým oblastiam, v ktorých by detailnejšia analýza priniesla významné pokroky v našom chápaní súčasných trendov.)

Cumulative innovation is central to economic growth. Do patent rights facilitate or impede follow-on innovation? We study the causal effect of removing patent rights by court invalidation on subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeals for the Federal Circuit to control for endogeneity of patent invalidation. Patent invalidation leads to a 50% increase in citations to the focal patent, on average, but the impact is heterogeneous and depends on characteristics of the bargaining environment. Patent rights block downstream innovation in computers, electronics, and medical instruments, but not in drugs, chemicals, or mechanical technologies. Moreover, the effect is entirely driven by invalidation of patents owned by large patentees that triggers more follow-on innovation by small firms.

Starting from the fact that nowadays, automotive companies have bigger revenues due to their investments in technology and innovation, as well as hiring high-skilled labor force, the aim of this research is to analyze the Romanian automotive industry from the perspective of intellectual capital and economic performance. After presenting its latest evolution, this paper carries out an analysis made from three different perspectives: human capital, infrastructure assets and market and intellectual property assets. Based on the results, in the last part of this article, a SWOT analysis of intellectual capital on Romanian automotive industry is sketched out.

This paper provides a theoretical investigation of the tension over knowledge disclosure between firms and their scientific employees. While empirical research suggests that scientists exhibit a “taste for science,” such open disclosures can limit a firm's competitive advantage or ability to profitably commercialize their innovations. To explore how this tension is resolved we focus on the strategic interaction between researchers and firms bargaining over whether (and how) knowledge will be disclosed. We evaluate four disclosure strategies: secrecy, patenting, open science (scientific publication) and patent-paper pairs providing insights into the determinants of the disclosure strategy of a firm. We find that patents and publications can be complementary instruments facilitating the disclosure of knowledge-providing predictions as to when stronger IP protection regimes might drive openness by firms.

Intellectual property rights are increasingly becoming an important asset of enterprises, so that an innovative business must carefully decide about the method of its valuation. The existing literature indicates three classical approaches to this issue: cost-based, income-based, and market-based methods, and a few more sophisticated ones such as: the option-based and patent citation methods, with their advantages and disadvantages. This paper proposes a novel methodology of non-linear corrections in the market model of patent valuation, when factors such as time to expiration, copying risk, or momentum in patent life cycle are taken into consideration. The proposed approach, based on evidence of the non-linear impact over time of the abovementioned factors on the value of patent, is anchored primarily in marketing science as well as in the theory and practice of accounting. This fine-tuning raises the accuracy and credibility of the market method of patent valuation.

Historical accounts suggest that Jewish émigrés from Nazi Germany revolutionized US science. To analyze the émigrés' effects on chemical innovation in the United States, we compare changes in patenting by US inventors in research fields of émigrés with fields of other German chemists. Patenting by US inventors increased by 31 percent in émigré fields. Regressions which instrument for émigré fields with pre-1933 fields of dismissed German chemists confirm a substantial increase in US invention. Inventor-level data indicate that émigrés encouraged innovation by attracting new researchers to their fields, rather than by increasing the productivity of incumbent inventors. (JEL J15, L65, N62, O31, O34)

This paper uses register-linked patent records covering an extended period 1985-2007 to analyze detailed demographic profiles of inventors. The analysis covers about 80 percent of all inventors with Swedish addresses listed on European Patent Office records. Examining temporal trends of gender, age, and education shows that the body of inventors is becoming more balanced in gender, younger, and more educated. However, the rate at which female inventors are entering into patenting has slowed down since the early 2000’s compared to the mid-1990s. Moreover, comparing the inventor sample with the entire population of Sweden reveals that 1) the closing of the gender gap in inventing is not taking place at the same rate as among Ph.D. holders and that 2) the dependence of inventing on the highly educated (especially, Ph.D. holders) is being intensified over time, but the number of highly educated is growing faster among the general population than among inventors. Finally, the analysis shows that there is significant heterogeneity in the composition and tendency of gender, age, and education of inventors across technology fields.

Economic development practitioners and scholars recognize the link between universities and regional economic development. It is predicated on the spillover of knowledge from universities to commercialization. The literature has focused on the supply side, which involves university research and technology transfer mechanisms. We examine the role played by the demand for university-based knowledge and university-developed technology. We identify links between businesses and the university as a key conduit facilitating the spillover of knowledge using data on the Department of Energy’s Small Business Innovation Research (SBIR) program. We provide supply-side evidence on university research relationships and how the use of knowledge and technologies that flow from a university affect economic growth. We identify the role that SBIR-funded businesses play in the spillover of knowledge from the creating organization to where that knowledge is used and commercialized. Our results suggest that knowledge is systematically transmitted through university-related research.

This paper analyses firms' decisions to seek intellectual property rights in global markets, particularly in China. We advance the notion of quadic patent family, defined as a patent family that consists of patent applications at the European Patent Office, the Japanese Patent Office, the United States Patent and Trademark Office, and the national patent office of a fourth country. We examine the determinants of quadic patenting at the industry level for China, and at the country level for a sample of 38 countries. Our results indicate that quadic patent applications are driven by the need for accessing markets, and for meeting the challenges of imitative threat and product market competition.

This paper examines how intellectual property rights (IPR) protection affects innovation and foreign direct investment (FDI) using a North–South quality-ladder model incorporating the exogenous and costless imitation of technology and subsidy policies for both R&D and FDI. We show that for the interior steady state to be stable, either R&D or FDI subsidy rates must be positive. Our findings also indicate that strengthening IPR protection promotes both innovation and FDI. Moreover, a strengthening of IPR protection can also improve welfare if the initial IPR protection in the South is weak and the R&D subsidy rate is not too high.

Most research on R&D internationalisation focuses on comparative analysis of location factors at the national level of analysis. Very little work, however, has taken place in this field for the sub-national regional location behavior of multi-national enterprises (MNE). The paper contributes to the existing research by providing evidence on the determinants of foreign technological activities at the sub-national level for Germany, which hosts the largest share of foreign R&D within the EU27 and features the highest cross-regional dispersion of patented research. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Particular attention is paid to the role of local knowledge spillovers, technological specialization and diversification. We differentiate foreign and domestic sources of specialisation and account for region and sector-specific influences. This is the first time that the ‘cross-border-ownership’ principle to measure R&D internationalisation is combined with regionalised patent information. To verify our findings we develop hypotheses. In particular, we expect and find that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to current empirical work, this effect applies both to foreign as well as domestic sources of specialization, although effects on foreign specialization seem more significant. We expect and find the same for science-industry spillovers. We postulate a negative impact of domestic specialization on foreign technological activities and a strong positive effect from diversification spillovers, by comparison with specialisation spillovers, but these hypotheses are rejected. We find that the direction of the specialisation effect depends on dominance in the position of domestic firms as well as on the balance of knowledge flows between them and foreign actors. Note: Downloadable document is in Russian.

Several recent technological standards were accompanied by patent pools—arrangements to license relevant intellectual property as a package. A key distinction made by regulators—between patents essential to a standard and patents with substitutes—has not been addressed in the theoretical literature. I show that pools of essential patents are always welfare increasing, while pools which include nonessential patents can be welfare reducing—even pools limited to complementary patents and stable under compulsory individual licensing. If pools gain commitment power and price as Stackelberg leaders, this reduces, and can reverse, the gains from welfareincreasing pools. (JEL D43, D45, K21, L13, L24, O34) hen firms with market power sell complementary goods, their combined price will typically be higher than if both were sold by a single monopolist. This effect, first understood by Cournot (1838) and later termed double marginalization, can be particularly severe in the context of intellectual property. In high-tech fields where innovation is rapid and cumulative, a large number of patents may touch on the same new technology; double marginalization can make the technology expensive to commercialize, harming downstream producers and consumers as well as the innovators the patent system was designed to reward. One tool to address this problem is a patent pool—an agreement by multiple patent holders to share a group of patents among themselves or to license them as a package to third parties. Patent pools in the United States go back to the 1850s, the first one involving sewing machine patents. Lerner and Tirole (

Creative industries clearly proved their potential for economic growth in the period before the crisis in Europe as well as across the world. However, the crisis has significantly changed the way of doing business and many sectors have been affected – some businesses managed to survive while others have been forced to close down. The present paper aims to examine whether creative industries have undergone a downturn as a result of the economic crisis or they managed to preserve their revitalising effect on countries, regions and cities.

The shipbuilding sector’s multiple contributions to the social and economic development, as well as to science and technology, of major maritime countries mean that the sector attracts strong interest of entrepreneurs, researchers, and government agencies. Meanwhile the diverse forms of inter-industrial interaction, and specific aspects associated with building high-technology vessels require significant investments. Hence that is a significant challenge in a context of increasingly uncertain future demand for innovative products. What will the global shipbuilding industry look like in the next 10-15 years? What market niches will open ‘windows of opportunity’ for the Russian shipbuilding industry? Experts from industrial companies and research organisations answered these and other questions as part of a foresight study conducted by the HSE ISSEK jointly with the Krylov State Research Centre. The industry is highly dependent on various global environmental, energy, demographic, food, transport and technological factors. Accordingly, the prospects for technological development of the Russian shipbuilding and ship repair industry were analysed in the context of global, national, and industry-specific challenges, trends, drivers and limitations. The study compiled a vision of the global shipbuilding’s future based on the analysis of the expert community’s opinions, strategic documents, programmes, and forecasts. The vision comprises multiple images covering more than 400 technologies and products grouped into 11 subject areas: ecology and environment protection; engines and mechanisms; ship designs; new materials and processing technologies; information technologies and automated systems; navigation; telecommunications; energy supply and energy saving; safety and security; management and control; vessels’ life cycle technologies; production technologies. Analysis of inter-industrial interaction revealed synergies by applying technological innovations created in other industries in the shipbuilding sector. The four possible shipbuilding development scenarios until 2030 are proposed taking into account key uncertainty factors and strategic ‘forks.’ These scenarios enabled us to identify high-priority areas with a potential to implement the full innovation cycle - from research and development to commercialisation of end products. The study’s plausible conclusion is that the Russian shipbuilding industry’s competitive advantages in the global market can be achieved by implementing active government policies to support the production of high-technology vessels and marine equipment to develop mineral deposits on the continental shelf.

This paper examines the role of IPRs protection on stimulating innovations across countries. To consider the possible difference in the relationship between IPRs and innovations for countries of various development degrees, we employ the technique of panel threshold model to proceed with empirical estimates. Based on a panel dataset of 42 countries over the 1997-2006 period, results show that stronger IPRs protections enhance innovations using conventional panel data model. After considering the threshold effects, IPRs protection remains a significantly positive influence on innovations for high-income countries, but it has no effect on fostering innovations for non-high-income countries.

The accounting regulations, the guidelines for their application and other articles by accounting specialists argue that inventions created internally are not recognized as intangible assets. Only assets acquired separately can be measured reliably, based on the document justifying the purchase transaction. Other specialised papers show that it is difficult to establish the existence of this intangible asset and its credible cost. That is, it can give or calculate a value of the invention only if it can show the acceptable cost of achieving it. But all these works argue that the protection of inventions is profitable if it is the basis of a new business, if it promotes or protects the current activity. However, these papers elude - because it is uncomfortable - the situation where an invention created internally has a value only because it forecloses the market. It is curious that an invention has accounting value only when traded.

The proliferation of technology to produce pirated software has prompted key questions in policy decision making on how to tackle the situation. The paper will employ Dynamic panel Generalized Methods of Moments and Two Stage Least Squares to address this. IPRs (Intellectual Property Rights) laws are instrumented with government quality dynamics to assess their incidence on software piracy. In essence, government quality variables are used as instrumental variables in investigating the role of IPRs laws on software piracy. The following findings are established. (1) Government institutions are crucial in enforcing IPRs laws in the fight against software piracy. (2) Main IP laws enacted by the legislature and Multilateral IP laws are most effective in combating piracy. (3) IPRs laws, WIPO Treaties and Bilateral Treaties do not have significant negative incidences on software piracy. Policy implications are discussed.

The number of patents has increased dramatically in the past three decades, as has the number of patent-related lawsuits, particularly in the field of software. Industry and academic experts have expressed concern that many of the patents being issued are of low quality. Writing in the Journal of Economic Perspectives, Stuart Graham and Saurabh Vishnubhakat have defended the United States Patent and Trademark Office, arguing that the PTO has acted responsibly in issuing patents that are legally valid and that it is handling problems constructively. We accept some of Graham and Vishnubhakat’s defense of the PTO, but argue that the most important issue is not whether the law is being competently administered but whether patent law, particularly as applied to software, is creating patents that are overly broad and ambiguous. We maintain that it is, and that the results are less innovation and more costly and unproductive litigation.

In this article, we reflect on how patents of introduction or importation, which compose an institutional policy related to weak IPR systems, could influence long-term international technology transfer. Both theoretically and empirically, the consequences of strengthening IPRs in lagging economies for technology transfer and innovation remain unclear. Although the mainstream literature tends to link stronger patent enforcement with better invention and innovation markets now and in the past, new theoretical and historical evidence supports extreme complexity in the relationship between IPR extension and scope and technological diffusion. For the first time, in this study, we analyze a large series of patents of introduction, which were a common feature of the early stages of almost all patent systems designed to favor technology transfer and innovation above original inventor property rights. Though typically used by pioneers, followers, and latecomers, we know little of how they functioned and their consequences. In this study, we analyze the use of patents of introduction throughout the nineteenth and twentieth centuries in Spain, which was a lagging country on the European periphery. The results demonstrate that this institutional policy could facilitate technology transfer, innovation, and advancement at earlier stages of industrialization. As additional research has demonstrated, such evidence may have serious implications for IPR treatment in both developing and underdeveloped economies.

This paper supports the understanding of the definition of intellectual property rights and strong connection with intangible assets and, on the other hand, provides a brief presentation of the organizations supporting the protection of such rights. The essential aim of this article is represented by the detailed information obtained as a result of research carried out in order to define, identify and study the application of IPR in general and especially in our country. At the end of the paper I mentioned what involves protecting intellectual property rights and brought little concerned how our country is perceived to protect such rights. Most often, intellectual property is defined as a formal document of title, like a lease, which means that the property is a legal concept distinct from real property that are actually good without concrete material form. Constitute a special category of assets being perceived as an original creation, derived from creative ideas; has or may have a commercial value due to its contribution to earnings for its owner. The need for protection of intellectual property rights has emerged because of the changes in the contemporary society. The aim and purpose of which is to protect human intelligence product and, at the same time, ensuring that consumers benefit from the use of the attributes of this product. Always remember that the violation of intellectual property rights, causes injury to major economic, signifying a strong threat to the consumers health and safety.

In order to gain competitive advantage organizations need more efficient use of intellectual capital. Therefore, management of intellectual capital has become one of the functions of growth in companies today. Focus on managing intelectul capital is due to the role intelectula competencies and knowledge in contemporary business which is significant. The most common terms for intellectual capital management functions at the organizational level are competence management and competence development. Managers conduct activities to manage intellectual capital in the need for knowledge on personnel competencies and their development in operative functions. The literature presents a series of intellectual capital management models, most belonging to the researchers in the Nordic countries. The aim of this paper is to developea new model of managing intellectual capital that improve the existing models. Thus, by using the proposed model is expected that the relationship between intellectual capital management and strategy of a company should intensify on medium term.

Biotechnologies are a priority area of development due to the scope of global challenges and social problems they help to resolve. There is demand for updated information about the the current state of research and challenges faced. This paper discusses the potential of patent analysis and surveys the Russian biotechnological market with both quantitative and qualitative methods. It reviews key statistical and analytical findings of empirical research.The main finding is that the Russian biotechnological market has a relatively high level of dependence on foreign technologies: among biotechnological patents published in Russia in 2012, a third was granted to non-residents. In Russia, foreigners are active in patenting universal methods and techniques useful for biotechnological advancement. This may constrain future Russian organizations’ access to results and methods and therefore block some directions of biotechnological research within the country. Among other challenges, are the following: a low involvement of the Russian commercial sector in developing biotechnologies, a lack of cooperation between the segments of the market, and a disadvantaged position of some subfields, such as eco- and aqua biotechnologies and bioenergy.By using patent data, we identify active actors contributing most significantly to progress of biotechnologies in Russia, and we focus on dynamically developing subfields, such as biomedicine and pharmaceuticals.

Competition policy and intellectual property rights (IPR) protection policy play a significant role in the innovation-based economic development. The authors of this work consider different combinations of these policies through the lens of discrete structural alternatives assuming opportunities for different regimes of IPR protection, as well as for antitrust. The analysis is focused on 4 main alternatives: strong and weak IPR protection, on the one hand, and two types of competition policy, based on a possible introduction of compulsory licensing, on the other hand. The result of the analysis shows that the introduction of compulsory licensing under a weak IPR protection weakens incentives for innovations.