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Variable: R&D staffing at t-2 ANZSIC Division ATET Std. Err. P-value n A -2.451 2.106 0.245 55 B 6.882 5.078 0.175 149 C 4.706 *** 1.100 0.000 1677 D 4.066 ** 1.906 0.033 42 E -4.790 2.986 0.109 59 F -11.715 8.948 0.190 33 G 0.650 0.436 0.136 6 I 2.615 5.277 0.620 34 J -5.465 17.493 0.755 107 K -39.503 72.499 0.586 48 M 2.198 *** 0.797 0.006 313 N 0.409 0.313 0.192 11 O 0.889 38.921 0.982 22 P -0.390 0.349 0.264 5 Q 1.234 1.831 0.500 143 R 10.416 ** 4.092 0.011 16 S 1.464 3.582 0.683 9 All 2.473 2.066 0.231 2729 Statistical significance indicated by asterisks at the 10% level * | 5% level ** | 1% level *** Table : ATET of applicants filing at least one innovation patent compared to filing only standard patents Variable: R&D expenditure at t-2 ANZSIC Division ATET Std. Err. n A -0.661 * 0.392 0.092 6 B -1.366 3.88 0.725 21 C -0.716 0.773 0.354 434 D 1.396 ** 0.564 0.013 41 E -3.046 4.823 0.528 27 F -2.031 * 1.077 0.059 7
G 1.050 0.65 0.106 5 I 7.558 7.765 0.330 8 J -17.707 17.214 0.304 19 K 7.523 9.439 0.425 9 M -1.082 *** 0.411 0.008 34 N -0.189 * 0.103 0.067 3 R -1.693 1.835 0.356 11 All -1.972 * 1.123 0.079 625 Variable: R&D staffing at t-2 ANZSIC Division ATET Std. Err. P-value n A -7.418 7.454 0.320 6 B -12.148 8.048 0.131 21 C -1.656 2.410 0.492 430 D 0.689 2.046 0.736 40 E 2.104 5.610 0.708 27 F -7.814 6.664 0.241 7 G 4.354 3.208 0.175 5 I 32.710 38.044 0.390 8 J -18.141 15.233 0.234 19 K -116.942 112.755 0.300 9 M -0.891 1.154 0.440 34 N -3.500 *** 0.816 0.000 3 R -10.607 9.434 0.261 11 All -4.485 2.823 0.112 620 Statistical significance indicated by asterisks at the 10% level * | 5% level ** | 1% level *** Table : ATET of applicants filing any type of patent compared to those filing no patents Variable: R&D expenditure at t-2 ANZSIC Division ATET Std. Err. P-value n A 0.127 0.262 0.628 61
Time 0.975 *** 0.057 17.120 0.000 Dummy variable indicating change in system -51.161 *** 14.752 -3.470 0.001 Time multiplied by dummy (slope) -0.029 0.139 -0.210 0.834 Constant 3.412 2.886 1.180 0.239 R-squared 0.739 Adj R-squared 0.733 n 138 Chow test that variable and time F(2,134) = 79.63 multiplied by dummy variable= 0 *** Prob > F = 0.000 Statistical significance indicated by asterisks at the 10% level * | 5% level ** | 1% level *** Table : Linear regression and chow test results of transition to innovation patent impact on intercept and slope, with GDP as explanatory variable Dependent variable: number of second-tier patent applications with enforceable rights Explanatory Variables Coef. Std. Err. t P>|t| GDP - chain volume measure 0.001 *** 0.000 15.720 0.000 Dummy variable indicating change in system 2.747 19.269 0.140 0.887 GDP multiplied by dummy (slope) 0.000 *** 0.000 -3.430 0.001 Constant -66.956 *** 7.365 -9.090 0.000 R-squared 0.706 Adj R-squared 0.700 n 138 Chow test that variable and time F(2,134) = 79.08 multiplied by dummy variable= 0 *** Prob > F = 0.000 Statistical significance indicated by asterisks at the 10% level * | 5% level ** | 1% level *** Table : Variance test between groups: number of second-tier patent applications granted enforceable rights Mean Std. Dev. Freq. Petty patent 46.333 26.532 87 Innovation patent 59.176 22.553 51 Levene robust test statistic Score P - Value
Time (B2) - represented Australian customers -30 -30 Time spent by represented applicants instructing their attorney. Derived from data from IP Australia’s 2014 regulation audit. Time (B3) – agents of Australian customers -120 -165 Time spent by agents representing domestic applicants. Derived from data from IP Australia’s 2014 regulation audit. Time (B4) – agents of foreign customers -120 -165 Time spent by agents representing international applicants. Derived from data from IP Australia’s 2014 regulation audit. Type of agent staff doing work Professional Inputs for one-off costs Input Notes Time to reconfigure IT systems (B5) 0 0 Not required Time to train staff (B6) 0 0 Not required Type of staff to be trained Administrative Time to read new legislation (B7) 0 0 Not required Estimates of Regulatory Cost Lower Upper Mid-point Average annual cost -$86,094.38 Confidence in mid-point estimate Medium Table : Examination costs – adverse report Description Opportunity cost of filing for examinations that are cleared after at least one adverse report (note that each category of examination costs incur different time costs and have been calculated separately) Inputs for ongoing costs Low
Input Volume (AV1 – AV4) 1 1 The innovation patent system has seen an average of roughly 3 oppositions per year, 2/3 of which finish ‘incomplete’ and 1/3 which is complete. Therefore 1 complete opposition has been assumed as an average yearly cost. Time (B1) - unrepresented Australian customers Time spent by unrepresented applicants. Derived from IP Australia’s 2014 regulation audit which is based on consultation with attorneys and IP Australia’s own estimates. Time (B2) - represented Australian customers Time by represented applicants instructing their attorney. Derived from data from IP Australia’s 2014 regulation audit. Time (B3) – agents of Australian customers Time spent by agents representing domestic applicants. Derived from data from IP Australia’s 2014 regulation audit. Time (B4) – agents of foreign customers Time spent by agents representing international applicants. Derived from data from IP Australia’s 2014 regulation audit. Type of staff doing work Professional Inputs for one-off costs Input Notes Time to reconfigure IT systems (B5) 0 0 Not required Time to train staff (B6) 0 0 Not required Type of agent staff to be trained Administrative Time to read new legislation (B7) 0 0 Not required
Calculations of fees paid by domestic applicants Total fees paid by private applicants were calculated separately to regulatory costs based on IP Australia finance data. Fees were then apportioned to firm sizes according to the degree they used the activity in question. The following fees were considered: application fee – ranging from 180 to 280 depending on whether the application was filed electronically or in paper examination fee - $500 renewal fee – ranging from 110 to 270 depending on whether the renewal was an early renewal or late / and whether the renewal was filed electronically or in paper as per the following table Application Fee Applications from Australian sources were estimated as an average of the number of domestic applications from the years 2011, 2012 and 2013: Table : Average number of applications for last 3 years, by firm size Large firm SME Private inventor 2011 85 462 795 2012 91 482 778 2013 80 543 601 Average 85.3 495.7 724.7 97% of all applications were received electronically; hence 97% of applicants paid the lower fee of $180 where 3% paid $280. The total cost across firm size was calculated at: Table : Application fees, by firm size Large firm SME Private inventor Application fees $15,616 $90,707 $132,614 Examination Fee Examinations from Australian sources were estimated as an average of the number of domestic requests for examination from the years 2010, 2011 and 2012 (2013 was examination request data for the year was incomplete): Table : Average number of examinations for last 3 years, by firm size