An Empirical Analysis of Process and Product Patenting: A Simultaneous Equation Framework

The results of this study support the hypothesis that research activity is not a homogeneous activity, and that important differences exist between the determinants of process patenting and product patenting. Further, the effects on concentration and advertising of research depend on the type of research carried on by firms. Concentration and process patenting are positively related and concentration and product patenting are not. There is some weak evidence linking advertising and product patenting. Further, process patenting tends to generate greater industrial concentration.

[1]  M. Porter,et al.  Scale Economies in Statistical Analyses of Market Power , 1975 .

[2]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[3]  Stephen Farber,et al.  Buyer Market Structure and R&D Effort: A Simultaneous Equations Model , 1981 .

[4]  Zvi Griliches,et al.  Patents and R&D at the firm level: A first report , 1980 .

[5]  F. Scherer,et al.  Using Linked Patent and R&D Data to Measure Interindustry Technology Flows , 1984 .

[6]  Robert A. Connolly,et al.  R&D, Market Structure, and Profits: A Value-Based Approach , 1984 .

[7]  S. Ornstein.  Industrial concentration and advertising intensity , 1977 .

[8]  W. Haessel.  Measuring Goodness of Fit in Linear and Nonlinear Models , 1978 .

[9]  R. Nelson.  Production Sets, Technological Knowledge, and R & D: Fragile and Overworked Constructs for Analysis of Productivity Growth? , 1980 .

[10]  Z. Griliches,et al.  Who Does R&D and Who Patents? , 1982 .

[11]  Frederic M. Scherer,et al.  The propensity to patent , 1983 .

[12]  Richard C. Levin,et al.  Tests of a Schumpeterian Model of R&D and Market Structure , 1984 .

[13]  Morton I. Kamien,et al.  Self-Financing of an R & D Project , 1976 .

[14]  J. Lunn.  The Roles of Property Rights and Market Power in Appropriating Innovative Output , 1985, The Journal of Legal Studies.

[15]  Albert N. Link,et al.  An Analysis of the Composition of R&D. Spending. , 1982 .

[16]  Henry G. Grabowski,et al.  The Determinants of Industrial Research and Development: A Study of the Chemical, Drug, and Petroleum Industries , 1968, Journal of Political Economy.

[17]  J. M. Samuels,et al.  Patents, profitability, liquidity and firm size , 1972 .

[18]  Edwin Mansfield,et al.  Basic Research and Productivity Increase in Manufacturing , 1980 .

[19]  Concentration and the returns to R&D , 1984 .

[20]  F. Scherer.  Concentration, R&D, and Productivity Change , 1983 .