Access to intellectual property for innovation: Evidence on problems and coping strategies from German firms

• Published in: Research policy Vol. 42; no. 2; pp. 529 - 541
• Main Authors: Mueller, Elisabeth, Cockburn, Iain M., MacGarvie, Megan
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.03.2013; Elsevier Sequoia S.A
• Subjects: Abandoned; Access to intellectual property; Innovation; Innovations; Intellectual property; Legal actions; Marketing; Ownership; Policies; Probability; R&D; Research & development; Strategy; Studies; Transaction costs; Germany; O34; Patents; Innovation; O31; Access to intellectual property
• ISSN: 0048-7333; 1873-7625
• DOI: 10.1016/j.respol.2012.09.005

► We investigate problems with access to intellectual property (IP) for innovation. ► Novel survey data on innovative German firms is used. ► Firms rarely stop projects or avoid them because of lack of access to IP. ► Many firms engaged in activities to deal with or avoid problems. ► Firms report fewer problems if IP ownership is more concentrated. Transaction costs and contracting problems associated with proliferation of patents may have a negative impact on innovation. We present novel data on how frequently innovative German firms encountered problems with access to intellectual property (IP) for their innovation activities. While a small percentage of firms reported having abandoned or not started innovation projects because of IP issues, larger fractions reported having pursued their projects after modifying them. Using “coping mechanisms” such as acquisition of additional IP rights or taking legal action to limit the IP held by others was quite common. Much of the incidence of self-reported IP problems and coping activity was concentrated in firms which were larger, more R&D intensive, and had more patents than the corresponding median firm. After controlling for firm characteristics, we find that firms operating in technology areas with higher concentration of IP ownership experience a lower probability of reporting IP-related problems.