| Acknowledgements | 8 |
|---|
| Contents | 10 |
|---|
| List of Symbols | 12 |
|---|
| Chapter 1 Introduction | 15 |
|---|
| 1.1 The Patent System | 20 |
| 1.1.1 Disclosure Requirement | 24 |
| 1.1.2 Research Exemption | 26 |
| 1.1.3 Patent Duration | 27 |
| 1.1.4 Patent Scope | 27 |
| 1.1.5 Inventive Step | 28 |
| 1.2 The Economic Analysis of the Propensity to Patent | 31 |
| 1.2.1 The Decision to Patent in the Light of the Protective Effect | 32 |
| 1.2.2 The Decision to Patent in the Light of the Disclosure Effect | 34 |
| 1.3 A New Theoretical Approach to the Propensity to Patent | 39 |
| 1.4 Empirical Insights on the Propensity to Patent | 43 |
| 1.5 Outline of the Book | 48 |
| Chapter 2 The Decision to Patent with Vertical Product Differentiation | 50 |
|---|
| 2.1 The Model Setup | 51 |
| 2.2 Price Competition | 53 |
| 2.3 Quality Choices | 55 |
| 2.3.1 Quality Choices if the Invention is Kept Secret | 58 |
| 2.3.2 Quality Choices if the Invention is Patented | 63 |
| 2.4 The Patenting Decision | 66 |
| 2.5 Licensing | 70 |
| 2.6 Welfare Considerations | 76 |
| 2.6.1 Welfare with Secrecy | 77 |
| 2.6.2 Welfare with a Patent | 77 |
| 2.6.3 Welfare with Licensing | 78 |
| 2.6.4 Welfare Maximizing Appropriation Choice | 78 |
| 2.7 Concluding Remarks | 80 |
| Chapter 3 An Empirical Investigation of the Decision to Patent with Vertical Product Differentiation | 83 |
|---|
| 3.1 Hypotheses and Their Empirical Implementation | 83 |
| 3.2 Sample Definition | 86 |
| 3.3 Variable Definition | 88 |
| 3.4 Empirical Results | 92 |
| 3.5 Concluding Remarks | 97 |
| Chapter 4 The Decision to Patent with Horizontal Product Differentiation | 99 |
|---|
| 4.1 The Model Setup | 101 |
| 4.2 Price Competition | 103 |
| 4.3 Market Entry | 109 |
| 4.4 The Patenting Decision | 114 |
| 4.5 Licensing | 121 |
| 4.6 Welfare Considerations | 124 |
| 4.6.1 Welfare with Secrecy | 124 |
| 4.6.2 Welfare with a Patent | 125 |
| 4.6.3 Welfare with Licensing | 129 |
| 4.6.4 Welfare Maximizing Appropriation Choice | 129 |
| 4.7 Concluding Remarks | 132 |
| Chapter 5 An Empirical Investigation of the Decision to Patent with Horizontal Product Differentiation | 135 |
|---|
| 5.1 Hypotheses and Their Empirical Implementation | 135 |
| 5.2 Sample and Variable Definition | 138 |
| 5.3 Empirical Results | 139 |
| 5.4 Concluding Remarks | 142 |
| Chapter 6 Summary and Discussion | 144 |
|---|
| Appendix A Proofs of Propositions, Lemmata andCorollaries in Chapter 2 | 154 |
|---|
| Appendix B Definition of Industry Dummies | 160 |
|---|
| Appendix C Proofs of Propositions and Lemmata inChapter 4 | 161 |
|---|
| References | 168 |