The Impact of Uncertain Intellectual Property Rights on the Market For Ideas: Evidence From Patent Grant Delays

This paper considers the impact of the intellectual property (IP) system on the timing of cooperation/licensing by start-up technology entrepreneurs. If the market for technology licenses is efficient, the timing of licensing is independent of whether IP has already been granted. In contrast, the need to disclosure complementary (yet unprotected) knowledge, asymmetric information, or search costs may retard efficient technology transfer. In these cases, reductions in uncertainty surrounding the scope and extent of IP rights may facilitate trade in the market for ideas. We employ a dataset combining information about cooperative licensing and the timing of patent allowances (the administrative event when patent rights are clarified). While pre-allowance licensing does occur, the hazard rate for achieving a cooperative licensing agreement significantly increases after patent allowance. Moreover, the impact of the patent system depends on the strategic and institutional environment in which firms operate. Patent allowance seems to play a particularly important role for technologies with longer technology lifecycles or that lack alternative mechanisms such as copyright, reputation, or brokers. The findings suggest that imperfections in the market for ideas may be important, and that formal IP rights may facilitate gains from technological trade.

When Does Start-Up Innovation Spur the Gale of Creative Destruction?

This paper is motivated by the substantial differences in start-up commercialization strategies observed across different high-technology sectors. Specifically, we evaluate the conditions under which start-up innovators earn their returns on innovation through product market competition with more established firms (such as in many areas of the electronics industry) as opposed to cooperation with these incumbents (either through licensing, strategic alliances or outright acquisition as observed in the pharmaceutical industry). While the former strategy challenges incumbent market power, the latter strategy tends to reinforce current market structure. Though the benefits of cooperation include forestalling the costs of competition in the product market and avoiding duplicative investment in sunk assets, imperfections in the market for ideas' may lead to competitive behavior in the product market. Specifically, if the transaction costs of bargaining are high or incumbents are likely to expropriate ideas from start-up innovators, then product market competition is more likely. We test these ideas using a novel dataset of the commercialization strategies of over 100 start-up innovators. Our principal robust findings are that the probability of cooperation is increasing in the innovator's control over intellectual property rights, association with venture capitalists (which reduce their transactional bargaining costs), and in the relative cost of control of specialized complementary assets. Our conclusion is that the propensity for pro-competitive benefits from start-up innovators reflects an earlier market failure, in the market for ideas.'

Theology, News and Notes - Vol. 41, No. 04

Theology News & Notes was a theological journal published by Fuller Theological Seminary from 1954 through 2014.https://digitalcommons.fuller.edu/tnn/1122/thumbnail.jp

Spitzer infrared spectrometer 16μm observations of the GOODS fields

We present Spitzer 16μm imaging of the Great Observatories Origins Deep Survey (GOODS) fields. We survey 150 arcmin^2 in each of the two GOODS fields (North and South), to an average 3σ depth of 40 and 65 μJy, respectively. We detect ~1300 sources in both fields combined. We validate the photometry using the 3–24μm spectral energy distribution of stars in the fields compared to Spitzer spectroscopic templates. Comparison with ISOCAM and AKARI observations in the same fields shows reasonable agreement, though the uncertainties are large. We provide a catalog of photometry, with sources cross-correlated with available Spitzer, Chandra, and Hubble Space Telescope data. Galaxy number counts show good agreement with previous results from ISOCAM and AKARI with improved uncertainties. We examine the 16–24μm flux ratio and find that for most sources it lies within the expected locus for starbursts and infrared luminous galaxies. A color cut of S_(16)/S_(24) > 1.4 selects mostly sources which lie at 1.1 < z < 1.6, where the 24μm passband contains both the redshifted 9.7 μm silicate absorption and the minimum between polycyclic aromatic hydrocarbon emission peaks. We measure the integrated galaxy light of 16μm sources and find a lower limit on the galaxy contribution to the extragalactic background light at this wavelength to be 2.2 ± 0.2 nW m^(−2) sr^(−1)