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Innovation Networks and Business-Stealing

Author

Listed:
  • Aghion, Philippe
  • Jackson, Matthew O.
  • Mayerowitz, Antoine
  • Tagade, Abhijit
Abstract
We use the universe of US Patent and Trademark Office (USPTO) data on patents and inventors from 1976 to 2017 to look at how inventors’ potential concern for business-stealing affects coauthorship on patents. First, we find an inverted-U shape in the fraction of coauthors that an inventor has per year who are new as a function number of other inventors also working in an inventor's field. Second, we find that after a breakthrough invention, an inventor brings in persistently fewer than usual new coauthors. Third, a higher potential concern for business stealing—as measured either by the number of others working or the average price markups by firms in the area—leads to a higher drop in the fraction of new co-authors per patent after a breakthrough. We show how these patterns can be explained via a simple model in which inventors trade off gains from collaboration against threats of business stealing.

Suggested Citation

  • Aghion, Philippe & Jackson, Matthew O. & Mayerowitz, Antoine & Tagade, Abhijit, 2023. "Innovation Networks and Business-Stealing," CEPR Discussion Papers 17911, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17911
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    File URL: https://cepr.org/publications/DP17911
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    More about this item

    Keywords

    Innovation; Business stealing; Collaboration;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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