Swedish Patent Litigation in Comparison to European

PublicationArticle (with peer review)
Anna Horn, Bengt Domeij, Financing of Innovations, Företagandets villkor, Innovation, Juridik, Patent, Per-Olof Bjuggren, Rättsekonomi


Exclusivity and transferability are the main characteristics of a private property right. The owner of a private property right has the legal rights to exclude others from its use, to appropriate the income emanating from its use and to sell it on whatever terms he and the buyer find agreeable. Insecure property rights discourage investors from investing. Property rights in ideas are called intellectual property rights. Intellectual property rights have a public good attribute. The protected information can be consumed by many at the same time. In order to give incentive to invest in innovations the use of the innovative idea has to be restricted (made exclusive). Without a possibility for an entrepreneur to charge for the use of innovative ideas there would be weak investment incentives. A patent is the intellectual property that intends to give an exclusive and transferable right to innovative technical ideas.
However, for a property right to be excludable and transferable it is crucial that it is well defined and legally enforceable. In this sense a patent differs from property rights to physical assets as e.g. ownership to land. To legally defend patents from infringements is costly and often results in a judicial decision that declares the patent invalid (revocation). In other words there is an uncertainty in the definition of the intellectual property right that makes the enforcement of patents costly. This transaction cost differs between jurisdictions. This paper studies different aspects of the legal enforceability of patents. More specifically we study how factors as legal costs, potential damages, duration of legal disputes, percentage of court decisions resulting in infringement or revocation differ between jurisdictions and are likely to affect the decisions of patentees to settle or to rely on a court decision. Litigation data from five different European jurisdictions is used.

Bjuggren, P-O., Domeij, B. & Horn, A. (2015). Swedish Patent Litigation in Comparison to European. Nordisk Immateriellt Rättsskydd, 2015(5), 504-522.

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The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

Aldieri, L., Grafström, J., & Vinci, C. P. (2021). The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector. Energies, 14(14), 4269.

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The empirical evidence concerning the job-creation impact of wind power technology through knowledge spillovers is yet poor. Our objective is to contribute to the literature and bridge this gap. Specifically, our analysis explores to what extent investments in innovation activities of one firm affect the neighbouring firms’ generation of knowledge spillovers in the same sector (intra-industry) or to different sectors (inter-industry) and how this complex knowledge diffusion process impacts the employment dynamics. The econometric analysis relies on a sector-based panel dataset for the USA, Europe, and Japan between 2002 and 2017. The empirical findings suggest that there were negative employment spillovers from the same technology sector (Marshallian externalities) while the spillovers from more diversified activity (Jacobian externalities) have a positive impact on job-creation. The findings have relevant policy implications for governments who are developing an industrial strategy for wind power technology.

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