Wednesday, September 23, 2015
Jinyoung Kim (Department of Economics, Korea University) shows Patent Portfolio Management of Sequential Innovations: Theory and Empirics.
ABSTRACT: This paper develops a model for understanding a firm's decisions regarding the maintenance (renewal) and patenting of sequential innovations and studies how these decisions are affected by the model's parameters such as maintenance fees and filing fees. The model offers a discriminating testable hypothesis, predicated on the cross-price effects, to identify complementarity or substitutability across sequential innovations. Our empirical results show that higher filing fees are associated with lower probability of patent renewal, which corroborates the case of complementarity in sequential innovations.