?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F658%2F&rft.title=Patent+value+and+R%26D+competition&rft.creator=Pammolli%2C+Fabio&rft.creator=Magazzini%2C+Laura&rft.creator=Riccaboni%2C+Massimo&rft.subject=HB+Economic+Theory&rft.subject=HD+Industries.+Land+use.+Labor&rft.subject=T201+Patents.+Trademarks&rft.description=This+paper+aims+at+characterizing+the+dynamics+of+R%26D+competition+within+the+pharmaceutical+domain%2C+focusing+on+the+role+of+patent+disclosure%2C+the+extent+of+uncertainty%2C+and+role+of+scientific+advances.+Following+the+empirical+literature+in+the+economics+of+innovation%2C+we+employ+patents+as+a+proxy+for+innovations+and+patent+citations+as+a+measure+of+knowledge+utilization+and+spillovers.+Pharmaceuticals+are+a+unique+setting+in+this+respect%2C+given+the+characteristics+of+the+innovation+process%2C+that+make+patents+an+important+means+for+appropriating+returns+from+R%26D.+All+in+all%2C+the+analysis+provides+evidence+that+in+the+pharmaceutical+industry+research+advances+through+a+process+of+trial-and-error%2C+where+both+successes+and+failures+set+the+ground+for+subsequent+innovations.+The+disclosure+of+the+information+about+new+compounds+or+new+mechanisms+of+action+play+an+important+role+in+this+industry+fostering+R%26D+efforts+and+competition+in+identified+therapeutic+markets+in+the+search+for+new+marketable+products+building+both+on+failures+and+successes.+The+outcome+of+this+process+is+highly+uncertain+and+building+on+a+success+provides+no+certainty+about+the+outcome+of+the+search.+Indeed%2C+discontinued+patents+building+on+previous+failures+exhibit+a+higher+citation+rate.+We+also+contribute+to+the+debate+about+the+relevance+of+citation+in+measuring+patent+value+by+looking+at+the+relationship+between+patent+citations+and+product+sales.&rft.publisher=Department+of+Economics%2C+University+of+Verona&rft.date=2008&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.identifier=++Pammolli%2C+Fabio+and+Magazzini%2C+Laura+and+Riccaboni%2C+Massimo++Patent+value+and+R%26D+competition.++Working+Paper++%2351%2F2008++++Department+of+Economics%2C+University+of+Verona++++ISSN+2036-2919.++++(Unpublished)+++