Diversification of procedural and administrative costs and innovation : some firm-level evidence

Kovač, Mitja (author), Spruk, Rok (author)

We examine the diversification of administrative and procedural costs on patent stockusing a large dataset from the European Patent Office with 15,000firms for the periodbetween 1995 and 2015. The results reveal that administrative and procedural costs aresignificant forfirm-level patenting activity. However, not all administrative and proceduralcosts have equal effects. Higher administrative costs often encourage patent applicationand validation by solving the adverse selection problem and short-run opportunism, aswell as other sources of asymmetric information. The effective administration of intel-lectual property law and low-cost enforcement are found to considerably foster patentingactivity. The effects are robust for various mis-specification checks and do not disappearonce country-level research and development infrastructure proxies are controlled for. Theextreme bounds of administrative and procedural costs are computed across more than 5billion regressions, and the sizeable impact of administration on patent application andvalidation outcomes is confirmed.

• Language: English
• Keywords: innovations, intelectual property, legislation, patents, intellectual property rights, patent stock, diversification of procedural and administrative cost
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2021
• Number of pages: Str. 56-98
• Numbering: Vol. 5, iss. 2
• PID: 20.500.12556/RUL-128185
• UDC: 001.895
• ISSN on article: 2096-2487
• DOI: 10.1016/j.ijis.2021.05.002
• COBISS.SI-ID: 69192707
• Publication date in RUL: 05.07.2021

KOVAČ, Mitja and SPRUK, Rok, 2021, Diversification of procedural and administrative costs and innovation : some firm-level evidence. International journal of innovation studies [online]. 2021. Vol. 5, no. 2, p. 56–98. [Accessed 24 April 2025]. DOI 10.1016/j.ijis.2021.05.002. Retrieved from: https://repozitorij.uni-lj.si/IzpisGradiva.php?lang=eng&id=128185

Record is a part of a journal

• Title: International journal of innovation studies
• Shortened title: Int. j. innov. stud.
• Publisher: Science Press (CSPM Ltd.), Elsevier
• ISSN: 2096-2487
• COBISS.SI-ID: 528555289

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.
• Licensing start date: 03.07.2021

Secondary language

• Language: Slovenian
• Keywords: inovacije, intelektualna lastnina, zakonodaja

Projects

• Funder: ARRS - Slovenian Research Agency
• Funding programme: Raziskovalni program
• Project number: P5-0128
• Name: Izzivi vključujočega in trajnostnega razvoja v prevladujoči paradigmi ekonomskih in poslovnih znanosti