Research Handbook on the Economics of Intellectual Property Law
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Research Handbook on the Economics of Intellectual Property Law

Vol 1: Theory Vol 2: Analytical Methods

Edited by Ben Depoorter, Peter Menell and David Schwartz

Both law and economics and intellectual property law have expanded dramatically in tandem over recent decades. This field-defining two-volume Handbook, featuring the leading legal, empirical, and law and economics scholars studying intellectual property rights, provides wide-ranging and in-depth analysis both of the economic theory underpinning intellectual property law, and the use of analytical methods to study it.
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Chapter 18: Patent rights and innovation: evidence from the semiconductor industry

Rosemarie H. Ziedonis and Alberto Galasso

Abstract

The past 50 years have witnessed remarkable improvements in the speed, size, and power of semiconductor devices, providing a vital underpinning for the modern information economy. This chapter describes empirical findings from studies that examine the relationship between patent rights and innovative activity in the U.S. semiconductor industry. Key questions include: how important are patent rights as a stimulus to innovation investment in this sector? What strategies do firms use to navigate the patent landscape and access technologies? To what extent, if at all, do patent rights deter follow-on innovations? The evidence suggests that, even within a single industry, patent rights play multi-faceted roles that alter the innovative activities of firms.

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