Difference between revisions of "Buss and Peukert (2015) 2"
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|Year=2015 | |Year=2015 | ||
|Full Citation=Buss, P., & Peukert, C. (2015). R&D outsourcing and intellectual property infringement. Research Policy, 44(4), 977-989. | |Full Citation=Buss, P., & Peukert, C. (2015). R&D outsourcing and intellectual property infringement. Research Policy, 44(4), 977-989. | ||
− | |Abstract= | + | |Abstract=The article empirically addresses value appropriation hazards when firms enter into external relationships in search for innovation. Using firm-level data from Germany, the paper documents a positive link between R&D outsourcing and intellectual property infringement. In line with theory, the authors show that this effect varies with the market value of knowledge, and the allocation of property rights. It is discussed how outsourcing induced spillovers may foster technology diffusion, affecting industry evolution and market structure. |
|Authentic Link=http://www.sciencedirect.com/science/article/pii/S0048733314001978 | |Authentic Link=http://www.sciencedirect.com/science/article/pii/S0048733314001978 | ||
|Link=http://www.sciencedirect.com/science/article/pii/S0048733314001978 | |Link=http://www.sciencedirect.com/science/article/pii/S0048733314001978 | ||
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* 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. | * 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 | + | * The estimated coefficient of R&D Outsourcing has the expected positive sign in all models. 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 (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. |
− | |||
− | 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 ( | ||
− | 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. | ||
− | * The empirical analysis has shown that R&D outsourcing is a channel through which firms | + | * The empirical analysis has shown that R&D outsourcing is a channel through which firms become aware of other firms’ technical developments, designs and products. Across a number of different specifications, we present evidence that this effect is more pronounced for generic compared to firm-specific IP. Further analyses suggest that the allocation of property rights can reduce spillovers. Keeping close ties to competitors in the sense of actively collaborating in innovation projects, and securing appropriability by the means of contractual agreements seems to be especially effective. Furthermore the analyses show that formal IP protection lowers the infringement risk. The striking result however is that vertical R&D outsourcing |
− | become aware of other firms’ technical developments, designs and products. Across a number | + | almost always bears some IP infringement risk, even when firms employ measures of formal IP protection |
− | of different specifications, we present evidence that this effect is more pronounced for generic | ||
− | compared to firm-specific IP. Further analyses suggest that the allocation of property rights | ||
− | can reduce spillovers. Keeping close ties to competitors in the sense of actively collaborating | ||
− | in innovation projects, and securing appropriability by the means of contractual agreements | ||
− | seems to be especially effective. Furthermore the analyses show that formal IP protection | ||
− | lowers the infringement risk. The striking result however is that vertical R&D outsourcing | ||
− | almost always bears some IP infringement risk, even when firms employ measures of formal | ||
− | IP protection | ||
|FundamentalIssue=5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media), | |FundamentalIssue=5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media), | ||
|EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness), | ||
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valuable for firms that operate in sectors that have limited access to formal measures of IP | valuable for firms that operate in sectors that have limited access to formal measures of IP | ||
protection. | protection. | ||
− | |Description of Data= | + | |Description of Data=The survey has been conducted on 2500 companies |
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|Data Year=2005-2007 | |Data Year=2005-2007 | ||
|Data Type=Primary and Secondary data | |Data Type=Primary and Secondary data | ||
− | |Data Source= | + | |Data Source=Literature review; |
|Method of Collection=Quantitative Collection Methods, Survey Research (quantitative; e.g. sales/income reporting), Qualitative Collection Methods | |Method of Collection=Quantitative Collection Methods, Survey Research (quantitative; e.g. sales/income reporting), Qualitative Collection Methods | ||
|Method of Analysis=Quantitative Analysis Methods, Qualitative Analysis Methods | |Method of Analysis=Quantitative Analysis Methods, Qualitative Analysis Methods |
Revision as of 07:58, 2 July 2016
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 |
Key Related Studies: | |
Discipline: | |
Linked by: |
About the Data | |
Data Description: | The survey has been conducted on 2500 companies |
Data Type: | Primary and Secondary data |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | No |
Comparative Study?: | No |
Literature review?: | Yes |
Government or policy study?: | No |
Time Period(s) of Collection: |
|
Funder(s): |
Abstract
The article empirically addresses value appropriation hazards when firms enter into external relationships in search for innovation. Using firm-level data from Germany, the paper documents a positive link between R&D outsourcing and intellectual property infringement. In line with theory, the authors show that this effect varies with the market value of knowledge, and the allocation of property rights. It is discussed 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 models. 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 (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.
- The empirical analysis has shown that R&D outsourcing is a channel through which firms become aware of other firms’ technical developments, designs and products. Across a number of different specifications, we present evidence that this effect is more pronounced for generic compared to firm-specific IP. Further analyses suggest that the allocation of property rights can reduce spillovers. Keeping close ties to competitors in the sense of actively collaborating in innovation projects, and securing appropriability by the means of contractual agreements seems to be especially effective. Furthermore the analyses show that formal IP protection lowers the infringement risk. The striking result however is that vertical R&D outsourcing
almost always bears some IP infringement risk, even when firms employ measures of formal IP protection
Policy Implications as Stated By Author
The results suggest that value-appropriation challenges are clearly evident with respect to technical inventions and designs. Thus, in cases where the latter represent critical core knowledge, managers should be cautious when it comes to buying external R&D. At the same time, this suggests that managers can at least partly influence the imitation risk by contracting out more specific tasks, that are less easy to transfer into a different commercial context. On that note it may also pay out to define con tractual terms which help to ‘artificially’ increase specificity. However, sometimes the benefits of R&D outsourcing may still prevail. When we think of products as modular combinations of early stage R&D, a firm might profit from external contributors (although under risk of loosing control over early stage IP) and simultaneously be able to secure its competitive ad vantage on the final product market. Clearly specifying the allocation of property rights is not only useful to align incentives, resulting in higher innovation efforts of the vendor (Arora and Merges, 2004; Leiponen, 2008), but also reduces the infringement risk. This will be especially valuable for firms that operate in sectors that have limited access to formal measures of IP protection.
Coverage of Study
Datasets
Sample size: | 2,500 |
Level of aggregation: | Company |
Period of material under study: | 2005-2007 |