Transfer of university patents and its impact on follow-on invention.

This study investigates the impact of granting firms exclusive rights to use university inventions via patent transfers on the creation of follow-on inventions. Analyzing 913 patents transferred from 107 U.S. research universities to firms between 2000 and 2013, the research finds no evidence that exclusive rights increase follow-on inventions by the recipient firms. Conversely, patent transfers are associated with a significant increase in follow-on inventions by nonrecipient firms, regardless of whether the patents originated from government-funded research. These findings challenge the conventional "tragedy of the anticommons" hypothesis, suggesting that exclusive patent transfers may signal emerging technological opportunities that stimulate broader innovation. The study highlights the nuanced role of universities as patent sellers in the innovation ecosystem and calls for further research on the strategic motives behind firms' patent acquisitions and the generalizability of these results beyond the U.S. context.