Buss and Peukert (2015)
Contents
Source Details
| Buss and Peukert (2015) | |
| Title: | R&D outsourcing and intellectual property infringement |
| Author(s): | Buss, P., Peukert, C. |
| Year: | 2015 |
| Citation: | Buss, P., & Peukert, C. (2015). R&D outsourcing and intellectual property infringement. Research Policy, 44(4), 977-989. |
| Link(s): | Definitive , Open Access |
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| About the Data | |
| Data Description: | Our measure of vertical R&D outsourcing is a dummy variable indicating whether firms have
contracted third parties for R&D between 2005 and 2007. Descriptive statistics in table 1 show that around 26 percent of the firms in our sample outsource R&D activities. We substitute this measure of vertical outsourcing with a measure of horizontal outsourcing (Competitor Cooperation) in an extension of the basic model that lets us test the idea that infringement should be less likely in horizontal arrangements (section 2.3.1). This variable is a dummy, indicating whether a firm cooperated with competitors to develop and introduce new products and processes on the basis of a contract-based cooperation agreement (either “in part” or “always”) between 2005 and 2007. A large majority of the firms in our sample (57 percent) report this type of R&D outsourcing. We observe infringement of three types of IP, namely technical inventions, designs and prod ucts. Firms are asked whether other firms have infringed upon IP in those categories between 2005 and 2007. Around 13 percent of the about 2,500 firms in our sample report IP infringe ment concerning inventions, 15 percent concerning products and some 11 percent report infringement of designs. Interpreting different types of IP as reflecting differences in the out side value of knowledge lets us test the idea that infringement conditional on outsourcing is more likely concerning generic rather than specific knowledge |
| Data Type: | Primary and Secondary data |
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| Cross Country Study?: | No |
| Comparative Study?: | No |
| Literature review?: | No |
| Government or policy study?: | No |
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Abstract
We empirically address value appropriation hazards when firms enter into external relationships in search for innovation. Using firm-level data from Germany we document a positive link between R&D outsourcing and intellectual property infringement. In line with theory we show that this effect varies with the market value of knowledge, and the allocation of property rights. We discuss how outsourcing induced spillovers may foster technology diffusion, affecting industry evolution and market structure.
Main Results of the Study
- The coefficient of large firms in the invention model is significant at the one percent level, indicating that companies with more than 250 employees face a higher likelihood of infringement of technical inventions than medium-sized firms (50–249 employees). Apart from that, the authors do not find huge differences across size groups. The coefficients of R&D Intensity and % University Degree are only significant in the invention model. As expected, differences between regions are important. Firms in East Germany have a lower risk of imitation throughout all IP categories. The coefficient of Exporter shows the expected positive sign and is significant in all specifications.
- They find considerable differences between types of industries. Knowledge intensive manufacturing firms have the highest likelihood of infringement throughout. This is more pronounced concerning infringement of inventions and designs, less so for infringement of products.
- The estimated coefficient of R&D Outsourcing has the expected positive sign in all mod
els. Much in line with what already saw in the descriptive statistics, the point estimate is largest concerning infringement of inventions, smaller concerning infringement of designs (this difference is not significant, however), and smallest concerning imitation of products. Compared to infringement of inventions, the outsourcing effect is significantly smaller (p value 0.07) concerning infringement of products. This is in line with their expectation that the correlation between R&D outsourcing and infringement of generic knowledge is stronger than the correlation between R&D outsourcing and infringement of specific knowledge.
Policy Implications as Stated By Author
Coverage of Study
Datasets
| Sample size: | 2,500 |
| Level of aggregation: | Company |
| Period of material under study: | 2005-2007 |
