de Rassenfosse, G. & van Pottelsberghe de la Potterie, B., 2012. "On the price elasticity of demand for patents". Oxford Bulletin of Economics and Statistics 74(1), 58-77.

Abstract
This paper provides an analysis of the impact of patent fees on the demand for patents. It presents a dataset of fees since 1980 at the European (EPO), the US and the Japanese patent offices. Descriptive statistics show that fees have severely decreased at the EPO over the 1990s, converging towards the level of fees in the US and Japan. The estimation of dynamic panel data models suggests that the price elasticity of demand for patents is about -0.30. These results suggest that the laxity of fee policy at the EPO has significantly contributed to the rising propensity to patent.

Keywords: patent cost, patenting fees, price elasticity, patent systems, propensity to patent
JEL classification: O30; O31; O38; O57

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This article:

• Shows that fees have severely decreased at the EPO over the 1990s, converging towards the level of fees in the US and Japan;
• Estimates dynamic panel data models of patent applications at the EPO, the USPTO and the JPO and finds that the price elasticity of demand for patents is about -0.30;
• Estimates that 20 per cent of the increase in patent filings at the EPO over the period 1995 to 2001 can be attributed to the decrease in fees;
• Recommends using patent fees as a policy tool to help curb down patent filings and increase patent offices' budget.

• The dataset on patent fees.

• I have noticed that some figures reported in Table 6 are wrong. Download the erratum.

• Are patent fees effective at weeding out low quality patents?
• The role of fees in patent systems: Theory and evidence
• Per un pugno di dollari: A first look at the price elasticity of patents
• A policy insight into the R&D-patent relationship

• On the price elasticity of demand for patents, CEPR Discussion Paper 7029
• On the price elasticity of demand for patents, ECARES Working Paper 2008-031
• On the price elasticity of demand for patents, CEB Working Paper 08/031