Patents create stronger incentives for commercialization
Daniel F. Spulber, 2021 - Elinor Hobbs Distinguished Professor of International Business and Professor of Strategy at the Kellogg School of Management at Northwestern. The Case For Patents, https://www.worldscientific.com/doi/pdf/10.1142/9789811225666_0001 //DH
The concept of the market for innovative control helps to explain why there are patent transfers. Firms have incentives to acquire patents as a means of adding value to the patent. Firms add to the market value of patents when they can improve on the invention, commercialize the invention more effectively, or better develop innovations based on the patent. Firms also have incentives to acquire patents when they can realize economies of scale and scope in the management of IP. Firms also have additional incentives to acquire patents when they can offer greater capabilities in the management of IP than existing owners. Producers acquire patents that they can apply in developing innovations in products, production processes, or transaction methods.