Working Paper: NBER ID: w17573
Authors: Ryan L. Lampe; Petra Moser
Abstract: Patent pools allow a group of firms to combine their patents as if they were a single firm. Theoretical models predict that pools encourage innovation in pool technologies, albeit at the cost of innovation in substitutes. Empirical evidence is scarce because modern pools are too recent to allow empirical analyses. This article examines data on patents and innovations by new firms for a historical pool in the sewing machine industry (1856-1877) to examine effects on innovation. Contrary to theoretical predictions, this analysis suggests that pools may discourage innovation in pool technologies and shift R&D towards technologically inferior substitutes.
Keywords: patent pools; innovation; sewing machine industry; R&D; historical analysis
JEL Codes: D4; K21; L10; L24; L4; N61; N81; O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| sewing machine patent pool (O34) | discourage innovation in pool technologies (lockstitch) (O31) |
| sewing machine patent pool (O34) | shift R&D towards technologically inferior substitutes (chain stitch) (O14) |
| dissolution of sewing machine patent pool (L49) | increase in patenting rates for lockstitch technologies (O39) |
| sewing machine patent pool (O34) | create market opportunities for lower-quality substitutes (D40) |
| patenting rates for lockstitch technologies pre-pool formation (N61) | continuous increase in British patents (O34) |