This chair started in 2013 for a five-year period. In partnership with the companies Air Liquide, Microsoft and Philips, it aims to develop empirical and theoretical research on markets for technology (hereafter MFT) and the key role of IP law in these markets. Our purposes are twofold:
Chair website : www.cerna.mines-paristech.fr/index.php/fr/recherche/ip-markets-for-technology
The last decade has seen a rapid development of the trade of technologies as intangible assets (disembodied from products) at the global scale and across a large array of sectors. MFT are generally perceived as a means to foster the diffusion of technology and innovation. They may also change the organization of competition, and induce a redistribution of key intellectual assets at the global scale. Accordingly, they are drawing growing interest among policy makers.
IP rights make it possible to capture and valorize disembodied technology, and are therefore the cornerstone of these emerging markets. However, MFT remain constrained by high transaction costs, which has prompted the emergence a variety of new market matching models and intermediaries (e.g., patent pools, trading platforms, patent auctions, patent rating, patent funds or other non-practicing entities). In most cases, it remains unclear whether these initiatives really offer effective solutions to enhance technology trading. Some of them – such as the proactive and aggressive enforcement of patents purchased by so-called “patent trolls”– also fuel controversy on possible misuses of the patent system.
Against this background, this research program focuses on the role of IP in MFT, as opposed to the widespread but misleading notion of markets for IP. MFT is indeed a broad notion that may encompass a large variety of practices, from the sale or licensing of IP rights to the acquisition of entire startup companies. While IP rights certainly play a key role in all cases, this role may differ between market channels. Accordingly, the trade of IPRs cannot be properly analyzed if not casted in the broader perspective of MFT.
The research questions are organized around three main research axes listed below. In all cases, priority is given to the collection and exploitation of relevant data to produce relevant evidence.
While economists frequently posit a simple equation between patent and innovation, our purpose here is to explore the imperfect articulation between IP rights and technology. On one hand, IP rights (patents, but also copyright, trademark or trade secret) are necessary to capture, codify and signal technology at different development stages. On the other hand, they may not cover all the know-how enabling the effective use of a technology, and their effectiveness as a protection mechanism is conditional to costly monitoring and enforcement procedures. By taking such factors into consideration, we aim to better account for the variety of practices and channels for trading knowledge in different industries, and to highlight the main obstacles still hampering the development of MFT.
Technologies assets are highly heterogeneous, of uncertain value, and only partially covered by IP rights. As a result, their trading is hampered by important transaction costs, which various types of intermediaries (patent pools, defensive aggregators, trading platforms, patent “trolls”) claim to reduce. Against this background, our purpose is to review existing initiatives and the underlying business models, carry out theoretical analysis and collect empirical evidence in order to assess their actual and potential impact on the efficiency of MFT.
MFT enable vertical separation and specialization between R&D and production activities, which in turn changes the way in which companies organize and compete within an industry. We study the way competition works in MFT and how it affects in turn downstream markets. We are especially interested in two important developments, namely i) firms’ ability to use MFT to develop joint technology or share their innovations, ii) the conditions for R&D specialization and externalization and their long term consequences on innovation and competition.
The chair is directed by Yann Ménière, and involves scholars from Mines ParisTech and Telecom ParisTech, as well as fellow researchers from other universities. The team has a strong record of academic publications, but also a real industry and policy expertise. During the past years, it has in particular capitalized a solid experience in the production and analysis of new empirical evidence.