Graduation Year

Spring 2013

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Eric Helland

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© 2013 Garrison R. Adomian

Abstract

This study provides an empirical analysis of patent litigation and innovation within high-tech firms. There is a significant drop in R&D over the course of the eleven year period of interest. However, the results do not show litigation causing a significant effect on R&D investments as either a percentage of revenue or a percentage change from year to year. Secondly, there was found to be a slight drop in percentage change of patents earned per year over time, but this was not found to be significantly caused by litigation. However there is strong evidence to support that increased litigation does cause the percentage of patents classified as utility patents to fall. Since this ratio of utility patents per total patents can be viewed as an indicator of innovative quality, this trend suggests that litigation does cause overall innovative quality of a firm’s efforts to diminish.

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