• Journal of Korea Technology Innovation Society
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• v.11 no.3
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• pp.335-351
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• 2008

The paper constructs the economic theory of sleeping patents in the knowledge-based economy. Starting with the definition of sleeping patents, we suggest the types of sleeping patents, intended and unintended ones. While intended sleeping patents are divided into 'for-defending technological position' and 'for-describing past technology', unintended sleeping patents include frictional, intrinsic, market-deficient, and institutional ones. We also introduce the concept of the natural rate of sleeping patent and measure the social loss due to sleeping patents. The study can contribute to solving policy problems for utilizing registered patents. For example, if we measure the natural rate of sleeping patent in Korea, we can estimate 'tolerable rate of sleeping patent' and control the extend of policy intervention for patents utilization. Since we invest the theory of sleeping patents firstly, the suggested concepts should be elaborated through further discussion in depth.