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We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold‐up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to
less entry into technologies regardless of a firm’s size.
Authors

Research Associate University of California, Berkeley
Bronwyn is Professor Emerita at the University of California at Berkeley and a Research Associate of the IFS.

Christian Helmers

Georg von Graevenitz
Working Paper details
- DOI
- 10.1920/wp.ifs.2016.1602
- Publisher
- Institute for Fiscal Studies
Suggested citation
B, Hall and C, Helmers and G, von Graevenitz. (2016). Technology entry in the presence of patent thickets. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/technology-entry-presence-patent-thickets (accessed: 8 February 2025).
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