Template-Type: ReDIF-Paper 1.0

Author-Name: Malte Mosel
Author-X-Name-First: Malte 
Author-X-Name-Last: Mosel

Title: The role of patents and secrecy for intellectual property protection: theory and evidence
	
Abstract: Traditionally patents are seen as the gold standard for intellectual property protection.
But, in line with empirical findings that secrecy is considered more important
for appropriating returns, recent theories predict that firms keep their most important
inventions secret. This article reconciles both opposing views in a unifying framework,
accounting for the main aspects causing the discrepancy: imperfect protection, patenting
costs, and simultaneous innovations. Theoretical results on the relation between
patenting and innovation size are then confronted with survey data for small European
firms. Using a binary size measure, we find strong support for the traditional view that
firms patent their most important innovations, but a continuous size measure reveals an
inverted-U relation between patenting and size, as predicted by the unifying framework.

Length:  36 pages
Creation-Date:  2012-04
File-URL: http://www.bgpe.de/texte/DP/117_Mosel.pdf
File-Format: Application/pdf
File-Function: First version, 2012
Number: 117
Classification-JEL: D22, D23, K11, L16, O34
Keywords: Filing fees, imitation, innovation, probabilistic patent rights, R&D, simultaneous innovation, trade secrets
Handle: RePEc:bav:wpaper:117_Mosel