Transaction Costs and Trolls: Strategic Behavior by Individual Inventors, Small Firms and Entrepreneurs in Patent Litigation

Ball, Gwendolyn G.; Kesan, Jay P.

doi:10.2139/ssrn.1337166

Cited by 22 publications

(15 citation statements)

References 25 publications

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“…Conte and Vivarelli (2005), for instance, find for Italian microdata between 1998 and 2000 that large firms rely heavily on own R&D innovative effort, while small firms more actively participate in cooperation agreements and business groups, including the acquisition of external technology, rather than choosing costly and time-consuming patent strategies. Ball and Kesan (2009) argue that due to high transaction costs of litigation, small firms may not be able to effectively monitor their patent rights and consequently choose not to apply for patents at all. Both observations give a qualitative argument, as to why inputand output-related R&D activity measures cause different reactions depending on firm size.…”

Section: Resultsmentioning

confidence: 99%

Does Firm Size make a Difference? Analysing the Effectiveness of R&D Subsidies in East Germany

Alecke¹,

Mitze

Reinkowski

et al. 2012

German Economic Review

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We analyse the impact of public subsidies on private sector research and development (R&D) activity for a sample of East German firms. Using propensity score matching, our empirical results indicate that subsidized firms indeed show a higher level of R&D intensity (R&D expenditures relative to total turnover) and a higher probability for patent application compared with non‐subsidized firms. We find that, on average, the R&D intensity increases from 1.5% to 3.9%. The probability of patent application rises from 20% to 40%. These results closely match earlier empirical findings for East Germany. Given the fact that the East German innovation system is particularly driven by small‐ and medium‐sized enterprises (SMEs), we draw special attention to the effectiveness of R&D subsidies for this latter subgroup. Here, no specific empirical evidence is available so far. Our findings indicate that policy effectiveness also holds for private R&D activity of SMEs, with the highest increase in terms of R&D intensity being estimated for microbusinesses with up to ten employees.

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Section: Resultsmentioning

confidence: 99%

Does Firm Size make a Difference? Analysing the Effectiveness of R&D Subsidies in East Germany

Alecke¹,

Mitze

Reinkowski

et al. 2012

German Economic Review

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“…Prior studies reveal that small firms litigate more, but they bear higher stakes than large firms (Allison et al 2004;Ball and Kesan 2009;Bessen and Meurer 2006). Large enterprises benefit more than small firms, owing to their higher success rates in litigation (Schliessler 2013).…”

Section: Empirical Enrichmentmentioning

confidence: 99%

Patent Litigation Strategy and Its Effects on the Firm

Yang

2019

Int J Management Reviews

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Patent litigation has attracted scholarly attention to reconcile multiple views for new research. Accordingly, this paper addresses patent litigation strategy and its effect on the firm. Based on 106 papers and articles, six books, the author's logic and practice impressions, it first defines patent litigation strategy and differentiates similar concepts. Second, based on the process, the author fine‐tunes patent litigation strategy into three tactics: threat, filing and verdict. Then, she categorizes and examines the impact of patent litigation on market value, monetary gain/loss and strategic collaboration. The findings show that the effect on the market value is more complex and ambiguous than anticipated, and sometimes contradictory. The analysis shows the consistency of monetary effect in practice, that firms tend to have higher monetary gains from private settlement than from legal awards. It also demonstrates that existing studies lag behind reality in investigating the detailed role of patent litigation on strategic collaboration from partnership (e.g. licensing and strategic alliance) to takeover (i.e. merger and acquisition). Finally, the author reflects on the findings, and maps out critical paths toward new research. This process also reveals that stakeholders, industrial settings and country environments moderate the studied relationship. This paper contributes to knowledge and practice: appreciates the interdisciplinary endeavors to draw the findings; categorizes patent litigation and its effect; and critiques prior studies on the relationship to integrate knowledge for future research.

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“…Starting with medium sized firms, measured in terms of 51 to 250 employees, table 5 shows that the effect on private R&D intensity is also significantly positive, but smaller compared to the average of all firms. We estimate a difference in the R&D intensity of about 1.7 to 1.8 percentage points.…”

mentioning

confidence: 96%

“…In model II we therefore try to reduce the number of variables used in a stepwise regression approach, that starts from a slim model only containing industry dummies and subsequently adds 4 For estimation we use software codes for Stata by Becker & Ichino (2002) as well as Leuven & Sianesi (2003). 5 We use the Epanechnikow kernel as default and apply different values for the bandwidth, which are commonly proposed in the literature (see e.g. Jones et al, 1996).…”

mentioning

confidence: 99%

Effectiveness of Public R&D Subsidies in East Germany – Is it a Matter of Firm Size?

et al. 2010

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Transaction Costs and Trolls: Strategic Behavior by Individual Inventors, Small Firms and Entrepreneurs in Patent Litigation

Cited by 22 publications

References 25 publications

Does Firm Size make a Difference? Analysing the Effectiveness of R&D Subsidies in East Germany

Does Firm Size make a Difference? Analysing the Effectiveness of R&D Subsidies in East Germany

Patent Litigation Strategy and Its Effects on the Firm

Effectiveness of Public R&D Subsidies in East Germany – Is it a Matter of Firm Size?

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