Patent Enforcement and Innovation

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Abstract

This paper investigates the effect of patent protection on cumulative innovation. While one of the main functions of the patent system is to foster innovation, patents might block sequential innovation. Consequently, the actual impact of patent rights on innovation is still under debate. To investigate this relationship, I analyze the impact of patent infringement litigation on cumulative innovation. The results for a sample of U.S. patents imply that patent citations increase after a case is filed in a court. While citations increase during the litigation period, the relative effect size decreases in the years following the closure of the case. Further results imply that this effect is particularly driven by patents subject to litigation with a high degree of novelty and patents with a narrow breadth. Analyzing the impact of non-practicing entities shows that the change in citations is lower for patents owned by this type of patent holders. Moreover, citations of litigated patents stem particularly from patents that are close in terms of technological proximity and general similarity.
Original languageEnglish
Title of host publicationProceedings of the Eighty-First Annual Meeting of the Academy of Management
EditorsSonia Taneja
Number of pages6
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2021
DOIs
Publication statusPublished - 2021
EventThe Academy of Management Annual Meeting 2021: Bringing the Manager Back in Management - Online
Duration: 29 Jul 20214 Aug 2021
Conference number: 81
https://aom.org/events/annual-meeting

Conference

ConferenceThe Academy of Management Annual Meeting 2021
Number81
LocationOnline
Period29/07/202104/08/2021
Internet address
SeriesAcademy of Management Proceedings
ISSN2151-6561

Keywords

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