The Role of Patents for Bridging the Science to Market Gap

Abstract

This paper examines an ex-post rationale for the patenting of scientific discoveries. In this model, scientist do not know which firms can make use of their discoveries, and firms do not know which scientific discoveries might be useful to them. To bridge this gap, either or both sides need to engage in costly search activities. Patents determine the appropriability of scientific discoveries, which affects the scientists. and firms. willingness to engage in search. Patents decrease dissemination when the search intensity of firms is sufficiently elastic, relative to that of scientists. The model also examines the role of universities. Patents facilitate the delegation of search activities to the universities' technology transfer offices, which enables efficient specialization. Rather than distracting scientists from doing research, patenting may be a complement to doing research.

Publications, patents, and the market for university inventions

“…The importance of intellectual property protection in the market for ideas has been a matter of longstanding inquiry, dating back at least to Arrow (1962). This paper complements recent efforts to explore the impact of patents and other appropriation mechanisms on efforts to commercialize university technologies (Dechenaux et al, 2003;Hellmann, 2007a). This paper takes as its unit of analysis the disclosure of an invention by a university scientist to the university's technology transfer office (TTO).…”

Shirking, sharing risk and shelving: The role of university license contracts

“…5 In accordance with Bayh-Dole, this property right is contingent on the licensee making "reasonable" efforts to commercialize it and a portion, α, of the revenue earned from the license must accrue to the inventor. Accordingly, the TLO by being better informed than other players in the technology transfer process (Hoppe and Ozdenoren, 2005;Hellmann, 2007;Macho-Stadler et al, 2007). maximizes utility from expected licensing revenue R, U A (R; L) given by…”

Strategic timing of academic commercialism: evidence from technology transfer

“…Market friction in technology transfers from public research organizations is typically related to search costs (Elfenbein 2007;Hellmann 2007). Because academic knowledge is prominently different from knowledge that firms commonly deal with, monitoring and searching process for technology adoption on the firm side require significant efforts.…”

“…This is mainly because the value of technological information lies only in its use and because the technology can be used for very few potential entities (Elfenbein 2007). Furthermore, locating a licensee and licensor in the markets for technology and matching them to each other generally involves a costly search process (Hellmann 2007).…”

“…Technology transfers from public research organizations are supposedly different in nature from inter-firm licensing (Bozeman 2000); thus, the characteristics of technology transfers have not yet been fully revealed. 1 Second, we clarify the type of search costs, often claimed to be the primary cause of market imperfection and the deferment of technology transfer from the public sector (Elfenbein 2007;Hellmann 2007). While Gans et al (2008) conceptualize the factors of market friction and attribute them to the delay in licensing technology, the study does not demonstrate their impact despite their significant role in causing market friction.…”