Working Paper: NBER ID: w23088
Authors: Heidi L. Williams
Abstract: While patent systems have been widely used both historically and internationally, there is nonetheless a tremendous amount of controversy over whether patent systems – in practice – improve the alignment between private returns and social contributions. In this paper, I describe three parameters – how the disclosure function affects research investments, how patent strength affects research investments in new technologies, and how patents on existing technologies affect follow-on innovation – needed to inform the question of how patents affect research investments, and review the available evidence which has attempted to empirically estimate these parameters.
Keywords: Patents; Research Investments; Innovation
JEL Codes: H41; K00; O34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Disclosure Requirement of Patents (O34) | Decreased Research and Development (R&D) Investments (O39) |
| Disclosure Requirement of Patents (O34) | Stimulated New Research Ideas (O36) |
| Stronger Patent Protection (O34) | Increased Research Investments (I23) |
| Patents Covering Existing Technologies (O34) | Hindered Development of Gene-Based Pharmaceutical Treatments (L65) |