Patent rights, innovation, and firm exit

• 成果类型: Article
• 署名作者: Galasso, Alberto; Schankerman, Mark
• 署名单位: University of Toronto; National Bureau of Economic Research; University of London; London School Economics & Political Science; Center for Economic & Policy Research (CEPR)
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12219
• 发表日期: 2018
• 页码: 64-86
• 关键词: research-and-development; product market; creative destruction; TECHNOLOGY; strategies; GROWTH; COURTS

摘要

We study the causal impact of patent invalidation on subsequent innovation and exit by patent holders. The analysis uses patent litigation data from the US Federal Circuit Court and exploits random allocation of judges to control for endogeneity of the decision. Invalidation causes patent holders to reduce patenting over a five-year window by 50% on average, but the effect is heterogeneous. The impact is large for small- and medium-sized firms, particularly where they face many large competitors, and for patents central to their research portfolio. We find no significant effect for large firms. Invalidation also increases exit from patenting by small firms.