Patent rights, product market reforms, and innovation
Tóm tắt
In this paper, we provide empirical evidence to the effect that strong patent rights may complement competition-increasing product market reforms in fostering innovation. First, we find that the product market reform induced by the large-scale internal market reform of the European Union in 1992 enhanced, on average, innovative investments in manufacturing industries of countries with strong patent rights since the pre-sample period, but not so in industries of countries with weaker patent rights. Second, the positive response to the product market reform is more pronounced in industries where, in general, innovators tend to value patent protection higher than in other industries, except for the manufacture of electrical and optical equipment. The observed complementarity between competition and patent protection can be rationalized using a Schumpeterian growth model with step-by-step innovation. In such a model, better patent protection prolongs the period over which a firm that successfully escapes competition by innovating, actually enjoys higher monopoly rents from its technological upgrade.
Tài liệu tham khảo
Acemoglu, D. (2009). Introduction to modern economic growth. Princeton, NJ: Princeton University Press.
Acemoglu, D., Aghion, P., & Zilibotti, F. (2006). Distance to frontier, selection, and economic growth. Journal of the European Economic Association, 4(1), 37–74.
Acemoglu, D., & Akcigit, U. (2012). Intellectual property rights policy, competition and innovation. Journal of the European Economic Association, 10(1), 1–42.
Acemoglu, D., & Linn, J. (2004). Market size in innovation: Theory and evidence from pharmaceutical industry. Quarterly Journal of Economics, 119(3), 1049–1090.
Aghion, P., Akcigit, U., & Howitt, P. (2014). What do we learn from Schumpeterian growth theory? In P. Aghion & S. Durlauf (Eds.), Handbook of economic growth (Vol. 2B, Chap. 1, 1st ed., pp. 515–563). Oxford: Elsevier (North Holland).
Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005). Competition and innovation: An inverted-U relationship. Quarterly Journal of Economics, 120(2), 701–728.
Aghion, P., Blundell, R., Griffith, R., Howitt, P., & Prantl, S. (2009). The effects of entry on incumbent innovation and productivity. Review of Economics and Statistics, 91(1), 20–32.
Aghion, P., Burgess, R., Redding, S. J., & Zilibotti, F. (2008). The unequal effects of liberalization: Evidence from dismantling the License Raj in India. American Economic Review, 98(4), 1397–1412.
Aghion, P., Harris, C., Howitt, P., & Vickers, J. (2001). Competition, imitation and growth with step-by-step innovation. Review of Economic Studies, 68(3), 467–492.
Aghion, P., Harris, C., & Vickers, J. (1997). Competition and growth with step-by-step innovation: An example. European Economic Review, 41(3–5), 771–782.
Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323–351.
Aghion, P., & Howitt, P. (2009). The economics of growth. Cambridge, MA: MIT Press.
Aghion, P., Howitt, P., & Prantl, S. (2013). Revisiting the relationship between competition, patenting, and innovation. In D. Acemoglu, M. Arellano, & E. Dekel (Eds.), Advances in economics and econometrics (Vol. 1 of Econometric Society Monographs (No. 49), Chap. 15, pp. 451–455). Cambridge, MA: Cambridge University Press.
Badinger, H. (2007). Has the EU’s Single Market Programme fostered competition? Testing for a decrease in mark-up ratios in EU industries. Oxford Bulletin of Economics and Statistics, 69(4), 497–519.
Baum, C. F., Schaffer, M. E., & Stillman, S. (2007). Enhanced routines for instrumental variables/generalized methods of moments estimation and testing. Stata Journal, 7(4), 465–506.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2000). A new database on the structure and development of the financial sector. World Bank Economic Review, 14(3), 597–605.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2009). Financial institutions and markets across countries and over time: Data and analysis. World Bank Policy Research Working Paper 4943.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2010a). Financial development and structure database (November 2010 version), http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,contentMDK:20696167~pagePK:64214825~piPK:64214943~theSitePK:469382,00.html, accessed 28 Dec 2011, and http://go.worldbank.org/X23UD9QUX0, accessed 15 Feb 2015.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2010b). Financial institutions and markets across countries and over time: The updated financial development and structure database. World Bank Economic Review, 24(1), 77–92.
Bloom, N., Draca, M., & Van Reenen, J. (2015). Trade-induced technical change? The impact of Chinese imports on innovation, IT and productivity. Review of Economic Studies (forthcoming).
Boldrin, M., & Levine, D. K. (2008). Against intellectual monopoly. Cambridge, MA: Cambridge University Press.
Bottasso, A., & Sembenelli, A. (2001). Market power, productivity and the EU single market program: Evidence from a panel of Italian firms. European Economic Review, 45(1), 167–186.
Branstetter, L. G., Fisman, R., & Foley, C. F. (2006). Do stronger intellectual property rights increase international technology transfer? Empirical evidence from U.S. firm-level panel data. Quarterly Journal of Economics, 121(1), 321–349.
Budish, E., Roin, B. N., & Williams, H. (2015). Do firms underinvest in long-term research? Evidence from cancer clinical trials. American Economic Review (forthcoming).
Buigues, P., Ilzkovitz, F., & Lebrun, J.-F. (1990). The impact of the internal market by industrial sector: The challenge for the member states. Commission of the European Communities, European Economy: Social Europe, Special Edition.
Chu, A. C., Cozzi, G., & Galli, S. (2012). Does intellectual monopoly stimulate or stifle innovation? European Economic Review, 56(4), 727–746.
Cohen, W., Nelson, R., & Walsh J. P. (2000). Protecting their intellectual assets: Appropriability conditions and why U.S. manufacturing firms patent (or not). National Bureau of Economic Research (NBER) Working Paper 7552.
Cozzi, G. (2001). Inventing or spying? Implications for growth? Journal of Economic Growth, 6(1), 55–77.
EU KLEMS. (2008). The EU KLEMS Database (March 2008 Release) and EU KLEMS Linked Data (October 2008 Release), see Marcel Timmer, Mary O’Mahony & Bart Van Ark, The EU KLEMS Growth and Productivity Accounts: An Overview, University of Groningen & University of Birmingham, http://www.euklems.net, accessed 15 Oct 2009, and http://www.euklems.net/linked.shtml, accessed 2 Feb 2012.
European Patent Organization (EPOrg). (2010). List of contracting states sorted according to the date of accession (last updated 18 August 2010). http://www.epo.org/about-us/organisation/member-states/date.html, accessed 2 Oct 2012.
Galasso, A., & Schankerman, M. (2015). Patents and cumulative innovation: Causal evidence from the courts. Quarterly Journal of Economics, 130(1), 317–369.
Gilbert, R. (2006). Looking for Mr. Schumpeter: Where are we in the competition-innovation debate? In A. B. Jaffe, J. Lerner & S. Stern (Eds.), Innovation policy and the economy (Vol. 6, Chap. 6, pp. 159–215). Cambridge, MA: MIT Press.
Ginarte, J. C., & Park, W. G. (1997). Determinants of patent rights: A cross-national study. Research Policy, 26(3), 283–301.
Griffith, R., Harrison, R., & Simpson, H. (2010). Product market reform and innovation in the EU. Scandinavian Journal of Economics, 112(2), 389–415.
Guimaraes, P., & Portugal, P. (2010). A simple feasible alternative procedure to estimate models with high-dimensional fixed effects. Stata Journal, 10(4), 628–649.
Hall, B. H. (2005). Exploring the patent explosion. Journal of Technology Transfer, 30(1/2), 35–48.
Hall, B. H., Jaffe, A. B., & Trajtenberg M. (2001). The NBER patent citations data file: lessons, insights and methodological tools. National Bureau of Economic Research (NBER) Working Paper 8498.
Hall, B. H., & Ziedonis, R. H. (2001). The patent paradox revisited: An empirical study of patenting in the U.S. semiconductor industry, 1979–1995. RAND Journal of Economics, 32(1), 101–128.
Kleibergen, F., & Paap, R. (2006). Generalized reduced rank tests using the singular value decomposition. Journal of Econometrics, 133(1), 97–126.
Lerner, J. (2000). 150 years of patent protection. National Bureau of Economic Research (NBER) Working Paper 7478.
Lerner, J. (2002). Patent protection and innovation over 150 years. National Bureau of Economic Research (NBER) Working Paper 8977.
Lerner, J. (2009). The empirical impact of intellectual property rights on innovation: Puzzles and clues. American Economic Review, 99(2), 343–348.
Levin, R. C., Klevorick, A. K., Nelson, R. R., & Winter, S. G. (1987). Appropriating the returns from industrial research and development. Brookings Papers on Economics Activity, 3, 783–820.
Li, C.-W. (2001). On the policy implications of endogenous technological progress. The Economic Journal, 111(471), C164–C179.
Maskus, K. E. (2000). Intellectual property rights in the global economy. Washington, DC: Insitute for International Economics.
Maskus, K. E., & Penubarti, M. (1995). How trade-related are intellectual property rights? Journal of International Economics, 39(3–4), 227–248.
Moser, P. (2005). How do patent laws influence innovation? Evidence from nineteenth-century world’s fairs. American Economic Review, 95(4), 1214–1236.
O’Donoghue, T., & Zweimüller, J. (2004). Patents in a model of endogenous growth. Journal of Economic Growth, 9(1), 81–123.
O’Mahony, M., Castaldi, C., Los, B., Bartelsman, E., Maimaiti, Y., Peng, F. (2008). EUKLEMS - Linked data: Sources and methods. Mimeo, University of Birmingham, http://www.euklems.net, accessed 18 Feb 2015.
O’Mahony, M., & Timmer, M. P. (2009). Output, input and productivity measures at the industry level: The EU KLEMS database. The Economic Journal, 119(538), F374–F403.
Organisation for Economic Co-operation and Development (OECD). (2009). Research and development expenditure in industry 2009: Analytical business enterprise research and development (ANBERD). Paris: OECD Publishing. doi:10.1787/rd_exp-2009-en-fr, accessed 23 Jan 2015.
Organisation for Economic Co-operation and Development (OECD). (2010). STAN Bilateral Trade Database (BTD, edition 2010, archived version, last updated October 2011), http://dx.doi.org/10.1787/data-00028-en and http://www.oecd.org/sti/btd, accessed 20 Feb 2015.
Organisation for Economic Co-operation and Development (OECD). (2011). STAN R&D Expenditure in Industry (ISIC Rev. 3.1) - Analytical business enterprise research and development (ANBERD) database (edition 2011, archived version, last updated 15 Jan 2013). doi:10.1787/data-00556-en and http://www.oecd.org/sti/anberd, accessed 23 Jan 2015.
Park, W. G. (2008a). International patent protection: 1960–2005. Research Policy, 37(4), 761–766.
Park, W. G. (2008b). Patent protection index. http://www.american.edu/cas/econ/faculty/park.html, accessed 18 Jan 2011, and http://nw08.american.edu/~wgp/, accessed 17 Feb 2015.
Qian, Y. (2007). Do national patent laws stimulate domestic innovation in a global patenting environment? Review of Economics and Statistics, 89(3), 436–453.
Rapp, R. T., & Rozek, R. P. (1990). Benefits and costs of intellectual property protection in developing countries. Journal of World Trade, 24(5), 75–102.
Romer, P. M. (1990). Endogenous technical change. Journal of Political Economy, 98(5), S71–S102.
Sakakibara, M., & Branstetter, L. G. (2001). Do stronger patents induce more innovation? Evidence from the 1988 Japanese patent law reforms. RAND Journal of Economics, 32(1), 77–100.
Schmutzler, A. (2010). Is competition good for innovation? A simple approach to an unresolved question. Foundations and Trends in Microeconomics, 5(6), 355–428.
Scotchmer, S. (2004). Innovation and incentives. Cambridge, MA: MIT Press.
Stock, J. H., & Yogo, M. (2005). Testing for weak instruments in linear IV Regressions. In D. W. K. Andrews & J. H. Stock (Eds.), Identification and inference for econometric models: Essays in honor of Thomas J. Rothenberg (pp. 80–108). Cambridge, MA: Cambridge University Press.
Tirole, J. (1988). The theory of industrial organization. Cambridge, MA: MIT Press.
Vives, X. (2008). Innovation and competitive pressure. Journal of Industrial Economics, 56(3), 419–469.
Von Graevenitz, G., Wagner, S., & Harhoff, D. (2011). How to measure patent thickets - A novel approach. Economics Letters, 111(1), 6–9.
World Intellectual Property Organization. (2012). WIPO Lex, http://www.wipo.int/wipolex/en/, accessed 15 Mar 2012 and 30 Sept 2014.