1932

Abstract

A strong tradition in economic history, which relies primarily 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 datasets 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 too strong, they have actually discouraged innovation. This review summarizes the major results from this research and presents open questions.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-economics-080315-015136
2016-10-31
2024-05-24
Loading full text...

Full text loading...

/deliver/fulltext/economics/8/1/annurev-economics-080315-015136.html?itemId=/content/journals/10.1146/annurev-economics-080315-015136&mimeType=html&fmt=ahah

Literature Cited

  1. Alien Property Custodian 1919. A Detailed Report by the Alien Property Custodian of all Proceedings Had by Him under the Trading with the Enemy Act During the Calendar Year 1918, and to the Close of Business on February 15, 1919 Washington, DC: US Gov. Print. Off.
  2. Allen RC. 1983. Collective invention. J. Econ. Behav. Organ. 4:1–24 [Google Scholar]
  3. Andrews BE. 1894. History of the United States, Volume 4 New York: Scribner's
  4. Anton JJ, Yao DA. 2004. Little patents and big secrets: managing intellectual property. RAND J. Econ. 35:1–22 [Google Scholar]
  5. Arora A, Rosenberg N. 1998. Chemicals: a US success story. Chemicals and Long-Term Economic Growth A Arora, R Landau, N Rosenberg 71–102 New York: Wiley [Google Scholar]
  6. Auerbach J. 1999. The Great Exhibition of 1851: A Nation on Display. New Haven, CT: Yale Univ. Press
  7. Baten J, Bianchi N, Moser P. 2015. Does compulsory licensing discourage invention? Evidence from German patents after WWI NBER Work. Pap.w21442
  8. Bessen J, Maskin P. 2009. Sequential innovation, patents, and imitation. RAND J. Econ. 40:611–35 [Google Scholar]
  9. Belfanti C. 2004. Guilds, patents, and the circulation of technical knowledge: northern Italy during the early Modern Age. Technol. Cult. 45:569–89 [Google Scholar]
  10. Biasi B, Dahl M, Moser P. 2015. Career effects of mental health Work. Pap. 2544251, Dep. Econ., Stern School Bus. New York Univ.
  11. Biasi B, Moser P. 2015. The impact of access on science evidence from the WWII Book Republication Program Work. Pap. 2542879, Dep. Econ., Stern School Bus. New York Univ.
  12. Bissell D. 1999. The First Conglomerate: 145 Years of the Singer Sewing Machine Company Brunswick, ME: Audenreed
  13. Cohen WM, Nelson RR, Walsh JP. 2000. Protecting their intellectual assets: appropriability conditions and why US manufacturing firms patent (or not) NBER Work. Pap. 7552
  14. Dickens C. 1868. A Poor Man's Tale of the Patent System. Charles Dickens's Works Charles Dickens ed. [18 Vols. of a 21 Vol. Set. Wanting A Child's History of England; Christmas Stories; The Mystery of Edwin Drood] London: Chapman and Hall [Google Scholar]
  15. Dutton HI. 1984. The Patent System and Inventive Activity during the Industrial Revolution, 1750–1852. Manchester, UK: Manchester Univ. Press
  16. Giorcelli M, Moser P. 2016. Copyright and creativity: evidence from Italian operas Work. Pap. 2505776, Dep. Econ., Stern School Bus. New York Univ.
  17. Griliches Z. 1990. Patent statistics as economic indicators: a survey. J. Econ. Lit. 28:41661–707 [Google Scholar]
  18. Haber LF. 1958. The Chemical Industry during the 19th Century: A Study of the Economic Aspect of Applied Chemistry in Europe and North America Oxford, UK: Oxford Univ. Press
  19. Hall BH, Jaffe AB, Trajtenberg M. 2001. The NBER patent citation data file: lessons, insights and methodological tools NBER Work. Pap8498
  20. Haltern U. 1971. Die Londoner Weltausstellung von 1851. Ein Beitrag zur Geschichte der burgerlich-industriellen Gesellschaft im 19. Jahrhundert. Münster, Ger.: Aschendorff
  21. Horstmann IJ, MacDonald G, Slivinski A. 1985. Patents as information transfer mechanisms: To patent or (maybe) not to patent. J. Polit. Econ. 93:837–58 [Google Scholar]
  22. Hounshell DA. 1985. From the American System to Mass Production, 1800–1932: The Development of Manufacturing Technology in the United States Baltimore, MD: Johns Hopkins Univ. Press [Google Scholar]
  23. Khan BZ. 2005. The Democratization of Invention: Patents and Copyrights in American Economic Development,1790–1920 Cambridge, UK: Cambridge Univ. Press
  24. Khan BZ. 2014. Inventing in the shadow of the patent system: evidence from 19th-century patents and prizes for technological innovation NBER Work. Pap. w20731
  25. Khan BZ, Sokoloff KL. 1993. Schemes of practical utility: entrepreneurship and innovation among ‘great inventors’ in the United States, 1790–1865. J. Econ. Hist. 53:289–307 [Google Scholar]
  26. Khan BZ, Sokoloff KL. 1998. Patent institutions, industrial organization and early technological change: Britain and the United States, 1790–1850. Technological Revolutions in Europe M Bergand, K Bruland 292–313 Cheltenham, UK: Edward Elgar [Google Scholar]
  27. Khan BZ, Sokoloff KL. 2001. History lessons: the early development of intellectual property institutions in the United States. J. Econ. Perspect. 15:233–46 [Google Scholar]
  28. Kretschmer W. 1999. Geschichte der Weltausstellungen Frankfurt, Ger.: Campus Verlag
  29. Kroker E. 1975. Die Weltausstellungen im 19. Jahrhundert: Industrieller Leistungsnachweis, Konkurrenzverhalten und Kommunikationsfunktion unter Berücksichtigung der Montanindustrie des Ruhrgebietes zwischen 1851 und 1880. Göttingen, Ger.: Vandhoeck Ruprecht
  30. Lakwete A. 2003. Inventing the Cotton Gin: Machine and Myth in Antebellum America. Baltimore, MD: Johns Hopkins Univ. Press
  31. Lamoreaux NR, Sokoloff KL. 1999. Inventors, firms, and the market for technology in the late nineteenth and early twentieth centuries. Learning by Doing in Markets, Firms and Countries NR Lamoreaux, DMG Raff, P Temin 19–60 Chicago: Univ. Chicago Press [Google Scholar]
  32. Lampe R, Moser P. 2010. Do patent pools encourage innovation? Evidence from the 19th-century sewing machine industry. J. Econ. Hist. 70:898–920 [Google Scholar]
  33. Lampe R, Moser P. 2016. Patent pools, competition and innovation—evidence from 20 industries under the New Deal. J. Law Econ. Organ. 32:11–36 [Google Scholar]
  34. Lampe R, Moser P. 2014. Patent pools and innovation in substitute technologies - evidence from the US sewing machine industry. RAND J. Econ. 44:4757–78 [Google Scholar]
  35. Landes DS. 1969. The Unbound Prometheus: Technological Change and Industrial Development in Western Europe from 1750 to the Present. Cambridge, UK: Cambridge Univ. Press
  36. Lerner J, Tirole J. 2004. Efficient patent pools. Am. Econ. Rev. 94:3691–711 [Google Scholar]
  37. Levin RC, Klevorick AK, Nelson RR, Winter SG. 1987. Appropriating the returns from industrial research and development. Brookings Pap. Econ. Act. 18:783–832 [Google Scholar]
  38. Li X, MacGarvie M, Moser P. 2014. Dead poets' property—The Copyright Act of 1814 and the price of books in the Romantic Period Work Pap. 2170447, Dep. Econ., Stern School Bus. New York Univ.
  39. MacGarvie M, Moser P. 2015. Copyright and the profitability of authorship: evidence from payments to writers in the Romantic Period. Economic Analysis of the Digital Economy A Goldfarb, SM Greenstein, CE Tucker 357–79 Chicago: Univ. Chicago Press [Google Scholar]
  40. MacLeod C. 1988. Inventing the Industrial Revolution: The English Patent System, 1660–1800. Cambridge, UK: Cambridge Univ. Press
  41. Moser P. 2003. How do patent laws influence innovation? Evidence from nineteenth-century world fairs NBER Work. Pap. 9909
  42. Moser P. 2005. How do patent laws influence innovation? Evidence from 19th-century World's Fairs. Am. Econ. Rev. 95:1215–12 [Google Scholar]
  43. Moser P. 2011. Do patents weaken the localization of innovations? Evidence from World's Fairs, 1851–1915. J. Econ. Hist. 71:363–82 [Google Scholar]
  44. Moser P. 2012. Innovation without patents. J. Law Econ. 55:143–74 [Google Scholar]
  45. Moser P, Nicholas T. 2013. Prizes, publicity and patents: non-monetary awards as a mechanism to encourage innovation. J. Ind. Econ. 61:763–88 [Google Scholar]
  46. Moser P, Ohmstedt J, Rhode PW. 2014a. Patent citations and the size of innovation—evidence from hybrid corn Work. Pap. 1888191, Dep. Econ., Stern School Bus. New York Univ.
  47. Moser P, Rhode PW. 2012. Did plant patents create the American Rose?. The Rate and Direction of Inventive Activity Revisited J Lerner, S Stern 413–38 Chicago: Univ. Chicago Press [Google Scholar]
  48. Moser P, Voena A. 2012. Compulsory licensing: evidence from the Trading with the Enemy Act. Am. Econ. Rev. 102:396–427 [Google Scholar]
  49. Moser P, Voena A, Waldinger F. 2014b. German-Jewish émigrés and US invention. Am. Econ. Rev. 194:3222–55 [Google Scholar]
  50. Mowery DC, Rosenberg N. 1998. Paths of Innovation. Technological Change in 20th-century America. Cambridge, UK: Cambridge Univ. Press
  51. North DC, Thomas RP. 1973. The Rise of the Western World: A New Economic History Cambridge, UK: Cambridge Univ. Press
  52. Nuvolari A. 2004. Collective invention during the British Industrial Revolution: the case of the Cornish pumping engine. Camb. J. Econ. 28:347–63 [Google Scholar]
  53. Oberholzer-Gee F, Strumpf K. 2007. The effect of file sharing on record sales: an empirical analysis. J. Pol. Econ. 115.1:1–42 [Google Scholar]
  54. Olmstead AL, Rhode PW. 2008. Biological innovation and productivity growth in the antebellum cotton economy. J. Econ. Hist. 68:1123–71 [Google Scholar]
  55. Parton J. 1867. History of the sewing machine. Atlantic Monthly May 19 527–41
  56. Penrose ET. 1951. The Economics of the International Patent System. Baltimore, MD: Johns Hopkins Univ. Press
  57. Robb HC Jr.. 1964. Plant patents. Encyclopaedia of Patent Practice and Invention Management R Calvert 641–55 New York: Reinhold [Google Scholar]
  58. Rolt LTC. 1970. Victorian Engineering Harmondsworth, UK: Penguin Books
  59. Rosenberg N. 1969. The American System of Manufactures Edinburgh, Scot.: Edinburgh Univ. Press
  60. Royal Commission 1851. Official Catalogue of the Great Exhibition of the Works of Industry of All Nations, 1851 London: Spicer Brothers
  61. Schiff E. 1971. Industrialization without National Patents. Princeton, NJ: Princeton Univ. Press
  62. Schmookler J. 1962. Economic sources of inventive activity. J. Econ. Hist. 22:1–20 [Google Scholar]
  63. Schmookler J. 1966. Invention and Economic Growth Cambridge, MA: Harvard Univ. Press
  64. Scotchmer S. 1991. Standing on the shoulders of giants: cumulative research and the patent law. J. Econ. Perspect. 5:129–41 [Google Scholar]
  65. Shapiro C. 2001. Navigating the patent thicket: cross licenses, patent pools, and standard setting. Innovation Policy and the Economy, Volume 1 AB Jaffe, J Lerner, S Stern 119–50 Cambridge, MA: MIT Press [Google Scholar]
  66. Sokoloff K. 1988. Inventive activity in early industrial America: evidence from patent records, 1790–1846. J. Econ. Hist. 48:813–50 [Google Scholar]
  67. Tallis J. 1852. Illustrated London: In Commemoration of the Great Exhibition of All Nations in 1851 London: John Tallis & Co.
  68. Thomson R. 2009. Structures of Change in the Mechanical Age: Technological Innovation in the United States, 1790–1865. Baltimore, MD: Johns Hopkins Univ. Press
  69. Waldfogel J. 2012. Copyright research in the digital age: moving from piracy to the supply of new products. Am. Econ. Rev. 102:3337–42 [Google Scholar]
  70. Whitworth J. 1854. New York Industrial Exhibition: Special Report of Mr. Joseph Whitworth London: Harrison and Sons [Google Scholar]
/content/journals/10.1146/annurev-economics-080315-015136
Loading
/content/journals/10.1146/annurev-economics-080315-015136
Loading

Data & Media loading...

  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error