The interaction between patents and other appropriability mechanisms: firm-level evidence from UK manufacturing

Abstract

This paper investigates firms’ propensities to patent in manufacturing. Using a unique data set from the UK Community Innovation Survey (CIS) this paper detects the determinants of the importance of patents as a protective device. In addition, this paper explores how patents interact with other appropriability mechanisms. We find that i) the importance of patents varies across industrial sectors and by firm size, ii) a perceived high importance of patents is associated with a higher innovative capacity, iii) competition is to a certain extent conducive to a greater importance for patents, iv) innovation collaborations and government support may increase the importance of patents depending on the agents engaged in these activities, and v) patents seem to work as complements rather than substitutes for other appropriability mechanisms.