Patent pendencies create uncertainty in research and development (R&D) collaboration agreements, resulting in a threat of expropriation of unprotected knowledge by potential partners, reduced bargaining power and enhanced search costs. In this paper, we show that - depending of the type of partner - uncertain intellectual property rights (IPR) lead to reduced collaboration between firms and may hinder the production of knowledge. This has implications for technology policy as R&D collaborations are exempt from anti-trust legislation in order to increase R&D in the economy. We argue that a functional IPR system is needed for successful utilization of this policy.
|Publisher||SSRN: Social Science Research Network|
|Number of pages||29|
|Publication status||Published - 2011|
|Series||ZEW Discussion Papers|
Czarnitzki, D., Hussinger, K., & Schneider, C. (2011). R&D Collaboration with Uncertain Intellectual Property Rights. SSRN: Social Science Research Network. ZEW Discussion Papers, No. 11-010 https://doi.org/10.2139/ssrn.1759438