Working Paper: NBER ID: w21964
Authors: Petra Moser
Abstract: A strong tradition in economic history, which primarily relies on qualitative evidence and statistical correlations, has emphasized the importance of patents as a primary driver of innovation. Recent improvements in empirical methodology – through the creation of new data sets and advances in identification – have produced research that challenges this traditional view. The findings of this literature provide a more nuanced view of the effects of intellectual property, and suggest that when patent rights have been too broad or strong, they have actually discouraged innovation. This paper summarizes the major results from this research and presents open questions.
Keywords: Technical Change; Intellectual Property; Patents; Science; Creativity
JEL Codes: K00; K21; L51; N00; O30; O31; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| patent rights (O34) | innovation (O35) |
| strong patent rights (O34) | innovation (O35) |
| compulsory licensing (D45) | patenting and innovation (O31) |
| patent pools (D45) | innovation (O35) |
| patent laws (K11) | innovation rates (O39) |
| historical variations in patent laws (O34) | innovation outcomes (O36) |