Patent Licensing, Technology Transfer, and Innovation
American Economic Review · 2016 · Volume 106 · Issue 5
Abstract
Traditional justifications for patents are based on direct or indirect contribution to product creation. Non-practicing entities (NPEs) might provide such innovation, either directly, through working the patent or transfer of technology to others who do, or indirectly, when others copy. Available evidence suggests, however, that ex post licensing demands from NPEs do not normally involve these activities. Some have argued that patents are valuable without technology transfer because the ability to exclude may drive commercialization that would not otherwise occur. We demonstrate that even if commercialization theories sometimes justify patent protection, they cannot justify most NPE lawsuits or licensing demands.
Keywords
Contracting Out, Joint Ventures, Technology Licensing, Innovation and Invention: Processes and Incentives, Technological Change: Choices and Consequences, Diffusion Processes, Intellectual Property and Intellectual Capital
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