Intermediation in innovation

authored by

Heidrun C. Hoppe, Emre Ozdenoren

Abstract

The paper offers a new theoretical framework to examine the role of intermediaries between creators and users of new inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation. An intermediary may provide an opportunity to economize on a critical component of efficient investment decisions-the expertise to sort 'profitable' from 'unprofitable' inventions. Our findings may help explain the surge in university patenting and licensing since the Bayh-Dole Act of 1980. The study also identifies several limitations to the potential efficiency of intermediation in innovation.

External Organisation(s)

University of Bonn
University of Michigan

Type

Article

Journal

International Journal of Industrial Organization

Volume

23

Pages

483-503

No. of pages

21

ISSN

0167-7187

Publication date

06.2005

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Industrial relations, Aerospace Engineering, Economics and Econometrics, Economics, Econometrics and Finance (miscellaneous), Strategy and Management, Industrial and Manufacturing Engineering

Sustainable Development Goals

SDG 9 - Industry, Innovation, and Infrastructure

Electronic version(s)

https://doi.org/10.1016/j.ijindorg.2005.03.003 (Access: Unknown)