Knowledge spillovers from the patenting process

This chapter highlights and investigates potential knowledge spillovers from a patent office. It furthermore discusses if such spillovers are localized within the nation. It researches if the interaction between the applicant firms and the patent office, in this case the Danish Patent and Trademark Office (DKPTO), adds to the general competence of both parties. In turn, this may have positive long-term effects on the ability of the firms to innovate and use the intellectual property rights (IPR) system. Patent offices are often regarded as performing relatively standardized processing of applications without much interaction with other parties in the innovation system. On the contrary, the research reveals that the DKPTO not only grants patents and sells business services, but also has a complementary role as a knowledge-diffusing organization. A survey was implemented to explore this role in the innovation system further. The general impact of the DKPTO on knowledge diffusion is, according to the survey, primarily to increase the awareness of IPR among firms and to bring together the IPR branch by constituting a central focus point for common interests. Additionally, the DKPTO serves a role in facilitating easy access to the patent system for firms by lowering the cultural and linguistic barriers of IPR protection. Moreover, the DKPTO educates patent engineers who after a period in the DKPTO are employed in other organizations. The role of the DKPTO in terms of stimulating innovation directly is modest, but the above-mentioned complementary functions are likely to produce considerable knowledge spillovers. On the basis of the results the organization of a European patent system is discussed, specifically whether a centralization of the patenting process would deprive nation states of the knowledge spillovers from a national location of patent offices. The conclusion from the study is that although many Danish firms would be able to do without a national patent office with regard to the patenting process, there is still a role for national IPR institutions.