Patent Races and Market Value

Dirk Czarnitzki, Katrin Hussinger, Bart Leten, Cédric Schneider

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Patent races are models of strategic interactions between firms competing to develop an invention. The winning firm secures a patent, protecting the invention from imitation. This paper tests the assumption made about the reward structure in patent races, both in discrete and complex industries. We identify patent race winners using detailed information from the patent examination reports at the European Patent Office (EPO). Estimates of a market value equation featuring large, R&D-intensive U.S., European and Japanese firms, show that if firms win patent races, their market value increases significantly. We further show that the gain in market value is significantly larger for patent race winners in discrete industries than for firms in complex industries.

Original languageEnglish
Publication date2012
Number of pages25
Publication statusPublished - 2012
EventThe 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012 - Rom, Italy
Duration: 2 Sep 20124 Sep 2012
Conference number: 39
http://www.webmeets.com/earie/2012/

Conference

ConferenceThe 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012
Number39
CountryItaly
CityRom
Period02/09/201204/09/2012
Internet address

Cite this

Czarnitzki, D., Hussinger, K., Leten, B., & Schneider, C. (2012). Patent Races and Market Value. Paper presented at The 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012, Rom, Italy.
Czarnitzki, Dirk ; Hussinger, Katrin ; Leten, Bart ; Schneider, Cédric. / Patent Races and Market Value. Paper presented at The 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012, Rom, Italy.25 p.
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Czarnitzki, D, Hussinger, K, Leten, B & Schneider, C 2012, 'Patent Races and Market Value' Paper presented at, Rom, Italy, 02/09/2012 - 04/09/2012, .

Patent Races and Market Value. / Czarnitzki, Dirk; Hussinger, Katrin; Leten, Bart; Schneider, Cédric.

2012. Paper presented at The 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012, Rom, Italy.

Research output: Contribution to conferencePaperResearchpeer-review

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AB - Patent races are models of strategic interactions between firms competing to develop an invention. The winning firm secures a patent, protecting the invention from imitation. This paper tests the assumption made about the reward structure in patent races, both in discrete and complex industries. We identify patent race winners using detailed information from the patent examination reports at the European Patent Office (EPO). Estimates of a market value equation featuring large, R&D-intensive U.S., European and Japanese firms, show that if firms win patent races, their market value increases significantly. We further show that the gain in market value is significantly larger for patent race winners in discrete industries than for firms in complex industries.

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Czarnitzki D, Hussinger K, Leten B, Schneider C. Patent Races and Market Value. 2012. Paper presented at The 39th Annual European Association for Research in Industrial Economics Conference. EARIE 2012, Rom, Italy.