TY - JOUR AU - Sakakibara,Mariko AU - Branstetter,Lee TI - Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms JF - National Bureau of Economic Research Working Paper Series VL - No. 7066 PY - 1999 Y2 - April 1999 UR - http://www.nber.org/papers/w7066 L1 - http://www.nber.org/papers/w7066.pdf N1 - Author contact info: Mariko Sakakibara Anderson Graduate School of Management UCLA 110 Westwood Plaza, Suite B508 Los Angeles, CA 90095-1481 Tel: 310/825-7831; mariko.sakakibara@anderson.ucla.edu E-Mail: mariko.sakakibara@anderson.ucla.edu Lee G. Branstetter Heinz College School of Public Policy and Management Department of Social and Decision Sciences Carnegie Mellon University Pittsburgh, PA 15213 Tel: 412/268-4649 E-Mail: branstet@andrew.cmu.edu AB - Does an expansion of patent scope induce more innovative effort by firms? This article provides evidence on this question by examining firm responses to the Japanese patent reforms of 1988. Interviews with practitioners suggest the reforms significantly expanded the scope of patent rights in Japan, but that the average response in terms of additional R&D effort and innovative output was quite modest. Interviews also suggest that firm organizational structure is an important determinant of the level of response. Econometric analysis using Japanese and U.S. patent data on 307 Japanese firms confirms that the magnitude of the response is quite small. ER -