Patents, learning by doing, and market structure in the chemical processing industries
Generate an AI Snapshot to get a quick, structured summary of this paper.
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
For a sample of 24 chemical products, count data models are used to evaluate firms' propensity to patent and the link between patented process innovations and output prices. The results show that process patenting was largely an outgrowth of 'learning by doing'. Propensity to patent increased with firm size but decreased with market concentration. Reductions in output prices were strongly linked to learning by doing, and more weakly to the rate of patenting. Producer firms appear to have been more successful than non-producers in appropriating the value of patented process innovations.