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The heterogeneous effect of software patents on expected returns: evidence from India

Eberhardt, Markus; Fafchamps, Marcel; Helmers, Christian; Patnam, Manasa

Authors

Marcel Fafchamps fafchamp@stanford.edu

Christian Helmers chelmers@scu.edu

Manasa Patnam manasa.patnam@ensae.fr



Abstract

We contribute to the literature on the role of patenting for economic development by analyzing the impact of patent protection for software in India. We find that a proposed broadening of patent eligibility to include software in 2004 had a large positive effect on average returns for listed software companies in India. An unanticipated reversal of this proposed policy change in 2005 resulted in substantial negative returns. We illustrate substantial heterogeneity in the dynamics of these effects across the sequence of events. We also find smaller firms to have been systematically and most significantly affected by the tightening of patent law with regard to software patents.

Journal Article Type Article
Publication Date Aug 3, 2016
Journal Economics Letters
Print ISSN 0165-1765
Electronic ISSN 0165-1765
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 145
APA6 Citation Eberhardt, M., Fafchamps, M., Helmers, C., & Patnam, M. (2016). The heterogeneous effect of software patents on expected returns: evidence from India. Economics Letters, 145, https://doi.org/10.1016/j.econlet.2016.05.016
DOI https://doi.org/10.1016/j.econlet.2016.05.016
Keywords Patents, software, innovation, India
Publisher URL http://www.sciencedirect.com/science/article/pii/S0165176516301720
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0





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