Downloads
wp201602.pdf
PDF | 1.41 MB
We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold‐up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to
less entry into technologies regardless of a firm’s size.
Authors
Research Associate University of California, Berkeley
Bronwyn is Professor Emerita at the University of California at Berkeley and a Research Associate of the IFS.
Christian Helmers
Georg von Graevenitz
Working Paper details
- DOI
- 10.1920/wp.ifs.2016.1602
- Publisher
- Institute for Fiscal Studies
Suggested citation
B, Hall and C, Helmers and G, von Graevenitz. (2016). Technology entry in the presence of patent thickets. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/technology-entry-presence-patent-thickets (accessed: 18 March 2024).
More from IFS
Understand this issue
Spring Budget 2024: What you need to know
7 March 2024
If we can’t have lower corporate taxes, can they at least be stable?
7 November 2022
Why is inequality in the labour market growing?
3 August 2022
Policy analysis
How has the NLW affected pay differentials within firms?
16 February 2024
The changing geography of jobs
13 November 2023
Increasing concentration of high-skilled jobs in London means graduates elsewhere cannot fully capitalise on their education
13 November 2023
Academic research
The role of privately held firms in income inequality
29 November 2023
Mafia infiltrations in times of crisis: Evidence from the Covid-19 shock
9 October 2023
Firm concentration & job design: the case of schedule flexible work arrangements
6 April 2023