Abstract:
Using a sample of non-financial public firms in China, we investigate the impact of patent litigation on plaintiff firms' and defendant firms' innovation. Specifically, we want to reveal how prosecutions, judgments and trial lengths of patent litigation influence innovative activities. The results are:(1) The charge of patent litigation will enhance innovation for both sides of lawsuits. Furthermore, when dividing plaintiff firms into industry leaders and industry followers, we find patent litigation will spur industry leaders' innovation while impede industry followers' innovate activities. (2) Industry leaders do not change their R&D investments regardless of winning or losing. However, industry followers and defendant firms will significantly increase or decrease R&D investments according to the judgments of lawsuits. (3) Trial lengths do not affect defendant firms' innovation, but they will stifle plaintiff firms' innovative activities. This negative effect is particularly significant for industry followers. Our research not only reveals how and in which mechanism patent litigation affects firms' innovation, but also provides references when firms consider choosing favorable paths to solve patent disputes.
潘越, 潘健平, 戴亦一. 专利侵权诉讼与企业创新[J]. 金融研究, 2016, 434(8): 191-206.
PAN Yue, PAN Jianping, DAI Yiyi. Patent Litigation and Innovation. Journal of Financial Research, 2016, 434(8): 191-206.
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