Innovation is commercialization of technology. Imperfections in markets for technology should leave marks on physical … investments for innovation. Two types of transaction costs could affect innovative investments: royality stacking and hold … ownership fragmentation on investments related to innovation for firms with small patent portfolios. Hold-up threats are …

Thickets of partially overlapping patent rights raise costs to secure IPR for innovation. Fragmented IP ownership … capital-intensities among owners of overlapping patents affect propensities to invest in innovation. I find that firms with … small patent portfolios are less likely to invest in innovation if IPR is fragmented. Firms with large patent portfolios are …