Citation

Discussion Paper Details

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Title: Intermediation in Innovation

Author(s): Heidrun C. Hoppe-Wewetzer and Emre Ozdenoren

Publication Date: February 2005

Keyword(s): innovation, Intermediation, market microstructure, matching, patent licensing and uncertainty

Programme Area(s): Industrial Organization

Abstract: The paper offers a new theoretical framework to examine the role of intermediaries between creators and users of new inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation. An intermediary may provide an opportunity to economize on a critical component of efficient investment decisions - the expertise to sort `profitable' from `unprofitable' inventions. Our findings may help explain the surge in university patenting and licensing since the Bayh-Dole Act of 1980. The study also identifies several limitations to the potential efficiency of intermediation in innovation.

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Bibliographic Reference

Hoppe-Wewetzer, H and Ozdenoren, E. 2005. 'Intermediation in Innovation'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4891