Renewal of Patents and Government Financing

36 Pages Posted: 8 Oct 2020

See all articles by Roger Svensson

Roger Svensson

Research Institute of Industrial Economics (IFN)

Date Written: August 14, 2008

Abstract

I apply a survival model to a detailed data set of Swedish patents to estimate how different factors affect the likelihood of patent renewal. Since the owners know more about the patents than potential external financiers, there is a problem of asymmetric information. To overcome this, Sweden has for a long time relied on government support rather than private venture capital. The empirical results show that patents which have received soft government financing in the R&D-phase have a higher probability of expiring than patents without such financing. But patents that have received more market-oriented government loans during the commercialization phase are renewed for as long as other commercialized patents. This finding indicates that it is the financing terms rather than bad choices of projects that explain the low renewal of patents with government financing.

Keywords: Patents, Renewal, Government Financing, Survival Model

JEL Classification: O34, O38, G30

Suggested Citation

Svensson, Roger, Renewal of Patents and Government Financing (August 14, 2008). IFN Working Paper No. 759, 2008, Available at SSRN: https://ssrn.com/abstract=3677817 or http://dx.doi.org/10.2139/ssrn.3677817

Roger Svensson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

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