Abstract
The historical changes in innovation-related activities of Japanese companies were analyzed in relation to those in the patent system using statistical data and survey results on patent and R&D activities. Results indicated that corporate actions related to innovation, including R&D and licensing, depend on a number of variables, such as the financial situation of individual companies, trends in technology and corporate strategy, among which the institutions for intellectual properties are of limited importance. However, industries related to the information technology and biotechnology have been greatly influenced by the extension of the scope of the patent, which now includes software, business models and genetic information. For example, increase in licensing transactions in these fields was found to be in parallel with increase in patent applications. While strengthening the incentive for enterprises to advance innovations, the "pro-patent" policies for expansion and strengthening of patent rights may limit the spill over effects of technologies by bolstering technology monopoly. Future intellectual property policies should take these antagonistic effects into account.
