You are here: Home > Research > Econometric evidence on the depreciation of innovations

Please cite as follows

de Rassenfosse, G. & Jaffe, A., 2018. "Econometric evidence on the depreciation of innovations". European Economic Review xx(x), xxx-xxx.


This paper presents estimates of the depreciation rate of innovations using survey data on revenues associated with Australian patents. Its novelty is twofold. First, it relies on direct observation of the revenue streams of inventions. This is in sharp contrast with previous studies, which all rely on models based on indirect observation and require strong identifying assumptions. Second, it presents estimates of the effect of patent protection on the depreciation rate. Results suggest that the depreciation rate is in the 2-7 per cent range. Inventions for which a patent is granted are associated with a 1-2 percentage point reduction in the depreciation rate.

Keywords: Appropriability; Intangible asset; Obsolescence; Depreciation; Returns to R&D
JEL classification: M41; O32; O33; O34

Access right required Download the published version
No access right required Download the working paper version
No access right required Download the reference to a citation manager (.ris file format)

Personal notes

This article:

Other known (older) versions of the paper