Introduction
This introduction describes how the book examines the relationships between IP rights, organizational form, and market structure, using a combination of theoretical analysis and empirical evidence drawn from almost 120 years of U.S. patent policy and associated technology markets. This analysis deploys a “dynamic” approach to IP analysis, which anticipates that the effects of changes in IP protections differ depending on firms’ ability to adopt non-IP alternative mechanisms for capturing returns on innovation. In general, larger and more integrated firms will be able to do so at a significantly lower cost than smaller and less integrated firms. The entity-specific effects of IP rights imply that stronger and weaker IP regimes will impact the range of viable organizational forms for structuring the innovation and commercialization process, which in turn impacts the structure of innovation markets and the allocation of resources across different types of innovation projects.