Does Winning a Patent Race lead to more follow-on Innovation?. (13th June 2020)

• Record Type: Journal Article
• Authors: Thompson, Neil C; Kuhn, Jeffrey M
• Is Part Of: Journal of legal analysis. Volume 12(2020)
• Page Start: 183
• Page End: 220
• Publication Date: 2020-06-13
• Subjects: Jurisprudence -- United States -- Periodicals; Law -- United States -- Periodicals; 347.7305
• DOI: 10.1093/jla/laaa001
• Languages: English
• ISSNs: 2161-7201

Abstract

Abstract: Competition between firms to invent and patent an idea, or "patent racing, " has been much discussed in theory, but seldom analyzed empirically and never at scale. This article introduces an empirical way to identify patent races, and provides the first broad-based view of them in the real world. It reveals that patent races are common, particularly in information-technology fields. The article then analyzes the effect of winning a patent race, showing that patent race winners do significantly more follow-on innovation, and their follow-on research is more similar to what was covered by the patent. (JEL CODES: O34, O32, O31)