Enhancing Patent Valorization and Opening Follow-on Innovation Paths through IP Maneuver: The Impact of the “Licensing of Right” Policy

One of the less investigated topics in the Open Innovation (OI) literature is the role of OI policy in encouraging OI practices (especially the outbound activities), in terms of promotion of the collaboration between different actors of the (national and regional) innovation ecosystem. This paper addresses this gap by analyzing the impact of one of the modern IP policy levers, launched by prominent IP offices (i.e. UK, Germany) to promote and support outbound activities (licensing-out). The “Licence of Right” (LOR) policy, incentivizes assignees to offer their patents to outsiders, by offering them a reduced annual maintenance fee and licensing support. Based on an original, recent and rich dataset encompassing LOR patents statistics applied for in UK and Germany, we analyze the impact of LOR policy both in terms of enhanced patent valorization and in terms of technological diffusion and patterns. Preliminary evidence suggests a different effect of this policy depending on the country of origin. Further analysis is therefore encouraged to understand the underlying specificities of OI policy to better address national needs.