Project description
Patents, innovation, and the engines of growth
Innovation stimulates economic growth through the replacement of existing technologies with new ones. This is the process of creative destruction, in which patents determine the incentives, the competition, and the extent to which small companies can compete against giants. Their effect, however, is subject to the efficiency with which patent offices can filter inventions and establish the criteria. With this in mind, the ERC-funded PRFI project aims to study the effects that patent rights have on technological competition between the US and Europe. It will develop patent office screening models, analyse error correction mechanisms, work on determining the socially optimal patentability criteria, and estimate the extent to which creative destruction stimulates economic benefits.
Objective
Innovation is the key driver of competitiveness and growth. It supplants existing technologies and erodes the market position of firms. This creative destruction lies at the heart of endogenous growth models. This proposal studies how patent rights shape innovation incentives and the micro-dynamics of technological competition in Europe and the U.S. Patent rights are a key policy instrument to enhance incentives, and it is critically important that patent-granting agencies function effectively. These incentives influence the dynamics of technological competition, and the extent to which small firms compete effectively with large firms. This proposal exploits patents as a window onto the dynamics of technological competition. Creative destruction operates through innovation and patents reflect the dynamics at this level. Patents are more informative when granting agencies effectively screen to ensure that inventions meet an appropriate patentability standard. Thus, screening is integrally linked to the broader study of innovation competition and creative destruction.
This proposal fills critical gaps in the literature, using frontier methodological and empirical tools, and contributes to evidence-based policymaking in science and technology. There are four thematically linked research strands, all of which break new ground. The first strand develops an economic model of screening by the European Patent Office, which incorporates its unique institutional features and enables us to quantify its effectiveness. The second empirically analyses key administrative mechanisms in the European and U.S. patent offices designed to correct screening errors. The third develops a methodology to assess whether the patentability standard is set at the efficient level for society. The fourth strand empirically studies the landscape and dynamics of technological competition and measures the impact of creative destruction on the gains from innovation.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
This project's classification has been human-validated.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
This project's classification has been human-validated.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2024-ADG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
WC2A 2AE London
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.