We examine the patenting behavior of firms in an industry characterized by rapid technological change and cumulative innovation. Recent survey evidence suggests that semiconductor firms do not rely heavily on patents to appropriate returns to R&D. Yet the propensity of semiconductor firms to patent has risen dramatically since the mid1980s. We explore this apparent paradox by conducting interviews with industry representatives and analyzing the patenting behavior of 95 U.S. semiconductor firms during 1979‐1995. The results suggest that the 1980s strengthening of U.S. patent rights spawned ‘‘patent portfolio races’’ among capital-intensive firms, but it also facilitated entry by specialized design firms.

/pdf/the-patent-paradox-revisited-an-empirical-study-of-patenting-2n9flpklqq.pdf

The patent paradox revisited: an empirical study of patenting in the U.S. semiconductor industry, 1979-1995

http://raw.rutgers.edu/docs/intangibles/Papers/the%20capitalizationamortization.pdf

The capitalization, amortization, and value-relevance of R&D

Publisher Summary This chapter discusses the perceptible movement of empirical scholars from a narrow concern with the role of firm size and market concentration toward a broader consideration of the fundamental determinants of technical change in industry. Although tastes, technological opportunity, and appropriability conditions themselves are subject to change over time, particularly in response to radical innovations that alter the technological regime, these conditions are reasonably assumed to determine inter-industry differences in innovative activity over relatively long periods. Although a substantial body of descriptive evidence has begun to accumulate on the way the nature and effects of demand, opportunity, and appropriability differ across industries, the absence of suitable data constrains progress in many areas. It has been observed that much of the empirical understanding of innovation derives not from the estimation of econometric models but from the use of other empirical methods. Many of the most credible empirical regularities have been established not by estimating and testing elaborate optimization models with published data but by the painstaking collection of original data, usually in the form of responses to relatively simple questions.

Chapter 18 Empirical studies of innovation and market structure

On the sources and significance of interindustry differences in technological opportunities

https://cris.maastrichtuniversity.nl/ws/files/1220731/guid-f4390b93-561b-4c75-9a82-b57b2036f02a-ASSET1.0

Measuring innovative performance: is there an advantage in using multiple indicators?

Patents and innovation: an empirical study

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Patents and innovation: an empirical study