Premium
ESTIMATING THE GAINS FROM TRADE IN THE MARKET FOR PATENT RIGHTS
Author(s) -
Serrano Carlos J.
Publication year - 2018
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/iere.12338
Subject(s) - incentive , value (mathematics) , economics , transaction cost , database transaction , gains from trade , transfer (computing) , microeconomics , industrial organization , business , international economics , trade barrier , machine learning , parallel computing , computer science , programming language
The “market for patents”—the sale of patents—is an often discussed source of incentives to invest in R&D. This article presents and estimates a model of the transfer and renewal of patents that, under some assumptions, allows me to quantify the gains resulting from the transfer of patents. The gains from trade measure the private benefits of reallocating the ownership of a patent from the original patentee to a new owner for whom the patent has a higher value. In addition, I study the effect that lowering transaction costs has on the proportion of patents traded and the gains from trade.