Patents, Spillovers, and Competition in Biotechnology

摘要: I perform an event study on 600+ patents awarded primarily to 20 leading biotechnology firms and find significant changes in market values at the time of awards. Adjusting for partial anticipation events, estimate that core technology highly contested research areas are expected generate between $13 $21 million economic value. They also spillover benefits patentee’s rivals—presumably including knowledge transfers—valued $3 $6 per firm. Awardees may appropriate only half private benefits, although observe negative spillovers some high-profile Most have no impact.