reference library

/reference library
reference library2018-06-08T14:23:35-07:00

This website features a collection of links to outside resources, many of which were cited in The Captured Economy, for readers interested in learning more about regressive regulation.

To filter the reference library by topic, please use the links on a topic page or open this page on a full-size screen and use the provided menu.

Optimal Patent Policy for Pharmaceutical Industry

Tanja Saxell, Tuomas Takalo, and Olena Izhak

VATT Institute for Economic Research

July 2020

We show how characterizing optimal patent policy for the pharmaceutical industry only requires information about generic producers’ responses to changes in the effective duration and scope of new drug patents….
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Technological Improvement Rate Estimates for All Technologies: Use of Patent Data and an Extended Domain Description

Anuraag Singh, Giorgio Triulzi, and Christopher L. Magee

SSRN

Apr 30, 2020

In this work, we attempt to provide a comprehensive granular account of the pace of technological change. More specifically, we survey estimated yearly performance improvement rates for nearly all definable…
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The Causal Effects of R&D Grants: Evidence From a Regression Discontinuity

Pietro Santoleri. Andrea Mina, Alberto Di Minin, and Irene Martelli

LEM Working Paper Series

June 2020

Direct public support for business R&D is a well-established remedy to market failures, yet empirical evidence on its effectiveness yields conflicting results. The paper investigates the impact of the first…
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Technology Diffusion

Nancy Stokey

NBER

July 2020

The importance of new technologies derives from the fact that they spread across many different users and uses, as well as different geographic regions. The diffusion of technological improvements, across…
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The Economics of Crowdfunding

Jen-Wen Chang

American Economic Journal

2020

An entrepreneur finances her project via crowdfunding. She chooses a funding mechanism (fixed or flexible), a price, and a funding goal. Under fixed funding, money is refunded if the goal…
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Innovation in the U.S. Government

Joshua R. Bruce and John M. de Figueiredo

NBER

May 2020

This paper examines the U.S. government’s intramural research and development efforts over a 40-year period, drawing together multiple human capital, government spending, and patent datasets. The U.S. Federal Government innovates…
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Patents, Innovation, and Development

Bronwyn H. Hall

NBER

May 2020

I survey some recent research on the role of patents in encouraging innovation and growth in developing economies, beginning with a brief history of international patent systems and facts about…
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Financing Vaccines for Global Health Security

Jonathan T. Vu, Benjamin K. Kaplan, Shomesh Chaudhuri, Monique K. Mansoura, and Andrew W. Lo

NBER

May 2020

Recent outbreaks of infectious pathogens such as Zika, Ebola, and COVID-19 have underscored the need for the dependable availability of vaccines against emerging infectious diseases (EIDs). The cost and risk…
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Internalizing Externalities: Designing Effective Data Policies

Ryan Hill, Carolyn Stein, and Heidi Williams

AEA Papers and Proceedings

May 2020

Many economics journals have recently invested in efforts to archive and curate research data and promote reproducible research. The economics profession has focused relatively less attention on what types of…
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Innovation α: What Do IP-Intensive Stock Price Indexes Tell Us about Innovation?

Carol Corrado, David Martin and Qianfan Wu

AEA Papers and Proceedings

May 2020

Patents and other intellectual property (IP) have grown in relative importance in investments and market capitalizations of public firms (e.g., Corrado and Hulten 2010). This paper illustrates the construction of…
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Expected Profits and The Scientific Novelty of Innovation

David Dranove, Craig Garthwaite, and Manuel I. Hermosilla

NBER

May 2020

Innovation policy involves trading off monopoly output and pricing in the short run in exchange for incentives for firms to develop new products in the future. While existing research demonstrates…
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Truly Standard-Essential Patents? A Semantics-Based Analysis

Lorenz Brachtendorf, Fabian Gaessler, and Dietmar Harhoff

Centre for Economic Policy Research

May 2020

Standard-essential patents (SEPs) have become a key element of technical coordination in standard-setting organizations. Yet, in many cases, it remains unclear whether a declared SEP is truly standard-essential. To date,…
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Tax Credits and Small Firm R&D Spending

Ajay Agrawal, Carlos Rosell, and Timothy Simcoe

American Economic Journal: Economic Policy

April 2020

In 2004, Canada changed the eligibility rules for its Scientific Research and Experimental Development (SRED) tax credit, which provides tax incentives for R&D conducted by small private firms. Difference-in-difference estimates…
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Advance Market Commitments: Insights from Theory and Experience

Michael Kremer, Jonathan D. Levin, and Christopher M. Snyder

NBER

February 2020

Ten years ago, donors committed $1.5 billion to a pilot Advance Market Commitment (AMC) to help purchase pneumococcal vaccine for low-income countries. The AMC aimed to encourage the development of…
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Scientific Grant Funding

Pierre Azoulay and Danielle Li

NBER

March 2020

This chapter provides an overview of grant funding as an innovation policy tool aimed at both practitioners and science policy scholars. We first discuss how grants relate to other contractual…
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Copyright and Creativity: Evidence from Italian Opera During the Napoleonic Age

Michela Giorcelli and Petra Moser

NBER

March 2020

This paper exploits exogenous variation in the adoption of copyrights – as a result of the timing of Napoléon’s military victories in Italy – to examine the effects of copyrights…
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The Risk of Caution: Evidence from an R&D Experiment

Richard Carson, Joshua S. Graff Zivin, Jordan Louviere, Sally Sadoff, and Jeffrey G. Shrader Jr

NBER

March 2020

Innovation is important for firm performance and broader economic growth. But breakthrough innovations necessarily require greater risk-taking than more incremental approaches. To understand how managers respond to uncertainty when making…
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How Much Can Pharma Lose?

Sean Dickson and Jeromie Ballreich

Westhealth Policy Center

December 2019

Whenever policymakers consider approaches to reduce drug spending, the pharmaceutical industry sings a familiar refrain— any reduction in drug manufacturer revenues will cause investment to wither, depriving manufacturers of the…
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Blind Spot: How the COVID-19 Outbreak Shows the Limits of Pharma’s Monopoly Model

Zain Rizvi

Public Citizen

February 19, 2020

As yet another coronavirus spreads around the globe, scientists are once again trying to develop new treatments and vaccines. Much remains unknown about this family of viruses. But we know…
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Profitability of Large Pharmaceutical Companies Compared With Other Large Public Companies

Fred D. Ledley, Sarah Shonka McCoy, and Gregory Vaughan

JAMA

March 3, 2020

Understanding the profitability of pharmaceutical companies is essential to formulating evidence-based policies to reduce drug costs while maintaining the industry’s ability to innovate and provide essential medicines. This cross-sectional study…
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Estimated Research and Development Investment Needed to Bring a New Medicine to Market, 2009-2018

Olivier J. Wouters, PhD1; Martin McKee, MD, DSc2; Jeroen Luyten, PhD

JAMA

March 3, 2020

The mean cost of developing a new drug has been the subject of debate, with recent estimates ranging from $314 million to $2.8 billion. Data were analyzed on new therapeutic…
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The Effects of Prize Structures on Innovative Performance

Joshua Graff Zivin and Elizabeth Lyons

NBER

February 2020

Successful innovation is essential for the survival and growth of organizations but how best to incentivize innovation is poorly understood. We compare how two common incentive schemes affect innovative performance…
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Product Innovation, Product Diversification, and Firm Growth: Evidence from Japan’s Early Industrialization

Serguey Braguinsky, Atsushi Ohyama, Tetsuji Okazaki, and Chad Syverson

NBER

February 2020

We explore how firms grow by adding products. In contrast to most earlier work on the topic, our conceptual and empirical framework allows for separate treatment of product innovation (vertical…
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Copyright and the Progress of Science: Why Text and Data Mining Is Lawful

Michael W. Carroll

UC Davis Law Review

2019

This Article argues that U.S. copyright law provides a competitive advantage in the global race for innovation policy because it permits researchers to conduct computational analysis — text and data…
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Demand Shocks, Procurement Policies, and the Nature of Medical Innovation: Evidence from Wartime Prosthetic Device Patents

Jeffrey Clemens, Parker Rogers

NBER

January 2020

We analyze wartime prosthetic device patents to investigate how procurement policy affects the cost, quality, and quantity of medical innovation. Analyzing whether inventions emphasize cost and/or quality requires generating new…
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Economic Perspectives on FRAND

Roya Ghafele

2019

The economic valuation of intellectual property is an area with which IP professionals still need to fully come to grips with. In the context of Standard Essential Patents (SEPs), the…
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Copyright and Creativity: Evidence from Italian Operas

Michela Giorcelli and Petra Moser

SSRN

May 19, 2019

This paper exploits variation in the adoption of copyright laws – due to idiosyncratic variation in the timing of Napoléon’s military victories – to investigate the causal effects of copyright…
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The Paradoxes of Patenting: Invention and Its Diffusion in 18th- and 19th-Century Britain, France, and North America

Christine MacLeod

Technology and Culture

October 1991

This article deals with a period of transition for most patent systems in Europe and North America, from instruments of royal prerogative power to specialized and statute-based weapons of capitalist…
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Appropriating the Returns from Industrial Research and Development

Richard C. Levin, Alvin K. Klevorick, Richard R. Nelson, Sidney G. Winter

Brookings Papers on Economic Activity

1987

This paper describes the results of an inquiry into appropriability conditions in more than one hundred manufacturing industries. We discuss how this information has been and might be used to…
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The Changing Structure of American Innovation: Some Cautionary Remarks for Economic Growth

Ashish Arora, Sharon Belenzon, Andrea Patacconi, and Jungkyu Suh

NBER

May 2019

A defining feature of modern economic growth is the systematic application of science to advance technology. However, despite sustained progress in scientific knowledge, recent productivity growth in the U.S. has…
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Gene Patents and Licensing Practices and Their Impact on Patient Access to Genetic Tests

Secretary’s Advisory Committee on Genetics, Health, and Society

Department of Health and Human Services

April 2010

In keeping with our mandate to provide advice on the broad range of policy issues raised by the development and use of genetic technologies as well as our charge to…
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The Uneasy Case for Software Copyrights Revisited

Pamela Samuelson

The George Washington Law Review

September 2011

Forty years ago, Justice Stephen Breyer expressed serious doubts about the economic soundness of extending copyright protection to computer programs in his seminal article, The Uneasy Case for Copyright. A…
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Aiming for the Goal: Contribution Dynamics of Crowdfunding

Joyee Deb, Aniko Oery, and Kevin R. Williams

NBER

May 2019

We study reward-based crowdfunding campaigns, a new class of dynamic contribution games where consumption is exclusive. Two types of backers participate: buyers want to consume the product while donors just…
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Intellectual Property Law and the Right to Repair

Leah Chan Grinvald and Ofer Tur-Sinai

Fordham Law Review

May 2019

In recent years, there has been a growing push towards state legislation that would provide consumers with a “right to repair” their products. Currently 18 states have pending legislation that…
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The Patent Troll: Benign Middleman or Stick-Up Artist?

David S. Abrams, Ufuk Akcigit, Gokhan Oz, and Jeremy G. Pearce

NBER

March 2019

How do non-practicing entities (“Patent Trolls”) impact innovation and technological progress? Although this question has important implications for industrial policy, little direct evidence about it exists. This paper provides new…
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Creativity Under Fire: The Effects of Competition on Creative Production

Daniel P. Gross

NBER

September 2018

Though fundamental to innovation and essential to many industries and occupations, individual creativity has received limited attention as an economic behavior and has historically proven difficult to study. This paper…
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Intellectual Property Laws: Wolves in Sheep’s Clothing

Brink Lindsey and Steven Teles

Pro-Market

September 15, 2017

In the rogues’ gallery of regulatory rent-seeking, copyright and patent laws are the wolves in sheep’s clothing. According to the ingenious and highly effective rhetoric of their beneficiaries and supporters,…
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The ESG-Innovation Disconnect: Evidence from Green Patenting

Lauren Cohen, Umit G. Gurun, and Quoc H. Nguyen

NBER

October 2020

No firm or sector of the global economy is untouched by innovation. In equilibrium, innovators will flock to (and innovation will occur where) the returns to innovative capital are the…
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Disclosure and Subsequent Innovation: Evidence from the Patent Depository Library Program

Jeffrey L. Furman, Markus Nagler, and Martin Watzinger

NBER

May 2018

How important is information disclosure through patents for subsequent innovation? Although disclosure is regarded as essential to the functioning of the patent system, legal scholars have expressed considerable skepticism about…
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Reducing Entry Barriers in the Development and Application of AI

Caleb Watney

R Street Institute

October 2018

Artificial Intelligence (AI) is developing rapidly and countries from around the globe are beginning to articulate national strategies for handling the political ramifications. Powering innovations like driverless cars, autonomous drones,…
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Volition Has No Role to Play in Determining Copyright Infringements

Randolph J. May and Seth L. Cooper

The Free State Foundation

September 2019

Historically, and consistently, direct copyright infringement has been understood to be a strict liability tort. Unfortunately, some recent lower court decisions addressing infringement of copyrighted content on online platforms could…
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How Many Life-Years Have New Drugs Saved? A 3-Way Fixed-Effects Analysis of 66 Diseases in 27 Countries, 2000-2013

Frank R. Lichtenberg

NBER

January 2019

“We analyze the role that the launch of new drugs has played in reducing the number of years of life lost (YLL) before 3 different ages (85, 70, and 55)…
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Overpatented, Overpriced

i-Mak

February 2019

This report analyzes the twelve best selling drugs in the United States and reveals that drugmakers file hundreds of patent applications – the vast majority of which are granted –…
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From Incentive to Commodity to Asset: How International Law is Reconceptualizing Intellectual Property

Rochelle Cooper Dreyfuss and Susy Frankel

Michigan Journal of International Law

October 2014

Domestic patent, copyright and trademark regimes are traditionally justified on an incentive rationale. While international intellectual property agreements are nominally aimed at harnessing global markets to expand incentives, this article…
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Innovative startup firms and the patent system

Bronwyn Hall

VoxEU

July 19, 2018

Patent protection is assumed to benefit entrepreneurs seeking investment, because patents signal quality and are an asset that can be resold if a startup fails. This column argues that the…
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Who Profits from Patents? Rent-Sharing at Innovative Firms

Patrick Kline, Neviana Petkova, Heidi Williams, and Owen Zidar

NBER

November 2018

This paper analyzes how patent-induced shocks to labor productivity propagate into worker compensation using a new linkage of US patent applications to US business and worker tax records. We infer…
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Tax Policy for Innovation

Bronwyn H. Hall

NBER

April 2019

A large number of countries around the world now provide some kind of tax incentive to encourage firms to undertake innovative activity. This paper presents the policy rationale for these…
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Is Intellectual Property the Root of All Evil? Patents, Copyrights, and Inequality

Dean Baker

Center for Economic and Policy Research

October 2018

This paper raises three issues on the relationship between intellectual property and inequality. The first is a simple logical point. Patents, copyrights, and other forms of intellectual property are public…
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Patent Trolls and Startup Employment

Ian Appel, Joan Farre-Mensa, and Elena Simintzi

SSRN

October 17, 2018

We analyze how frivolous patent-infringement claims made by non-practicing entities (NPEs, or “patent trolls”) affect startups’ ability to grow and create jobs, innovate, and raise capital. Our identification strategy exploits…
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Patent Trolls and the Market for Acquisitions

Arash Dayani

SSRN

November 15, 2019

Frivolous patent-infringement claims increase the cost of innovation for small businesses and force them to exit via premature and discounted acquisitions. This study investigates the effect of abusive patent-infringement claims…
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Worst-case deadweight loss: Theory and disturbing real-world implications

Michael Kremer, Christopher Snyder, Albert Chen

Vox EU

March 26, 2019

The deadweight loss from a monopolist’s not producing at all can be much greater than from charging too high a price. The column argues that the potential for this sort…
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International Intellectual Property Index

Meri Pugatch and David Torstensson

Global Innovation Policy Center

February 8, 2019

“In a remarkably short time viewed in a historical context, the lives of billions of people worldwide have been transformed for the better through innovation and creativity. Intellectual property (IP)…
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In-Text Patent Citations: A User’s Guide

Kevin A. Bryan, Yasin Ozcan, and Bhaven N. Sampat

NBER

April 2019

We introduce, validate, and provide a public database of a new measure of the knowledge inventors draw on: scientific references in patent specifications. These references are common and algorithmically extractable….
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Beyond Patents

Jeffrey Funk

Issues in Science and Technology

Summer 2018

I argue that the growing dominance of patent analysis not only fails to provide valuable and reliable insight into innovation processes, but is a smoke screen that prevents social scientists…
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Schumpeterian Profits and the Alchemist Fallacy Revised

William D. Nordhaus

Yale University

April 2005

The present study examines the importance of Schumpeterian profits in the United States economy. Schumpeterian profits are defined as those profits that arise when firms are able to appropriate the…
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Venture Capital’s Role in Financing Innovation: What We Know and How Much We Still Need to Learn

Josh Lerner and Ramana Nanda

Venture Capital’s Role in Financing Innovation: What We Know and How Much We Still Need to Learn

Summer 2020

We begin this paper by tracing the growth of the venture capital industry over the past 40 years, noting how technological and institutional changes have narrowed the focus and concentrated…
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Productivity Benefits of Medical Care: Evidence from US-Based Randomized Clinical Trials

Alice J. Chen and Dana P. Goldman

Value in Health

August 2018

One of the key recommendations of the Second Panel on Cost-Effectiveness in Health and Medicine is to take a societal perspective when evaluating new technologies—including measuring the productivity benefits of…
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Patents, Property, and Prospectivity

Jonathan Masur and Adam Mortara

Patents, Property, and Prospectivity

April 2019

When judges change the legal rules governing patents, those changes are always retroactive. That is, they apply equally to patents that have already been granted and patents that do not…
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The Importance of an Effective and Reliable Patent System to Investment in Critical Technologies

Mark F. Schultz

The Importance of an Effective and Reliable Patent System to Investment in Critical Technologies

July 2020

As the U.S. patent system has weakened, venture capital investment shifted away from patentintensive industries. We supplemented our exhaustive review of 14 years of data tracking VC investment by talking…
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Research Funding and Collaboration

Benjamin Davies, Jason Gush, Shaun C. Hendy, and Adam B. Jaffe

NBER

October 2020

We analyse whether research funding contests promote co-authorship. Our analysis combines Scopus publication records with data on applications to the Marsden Fund, the premiere source of funding for basic research…
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How Patent Damages Skew Licensing Markets

Erik Hovenkamp and Jonathan Masur

Coase-Sandor Institute for Law and Economics

2016

If a litigated patent has previously been licensed to a third party, the courts generally adopt the terms of the prior agreement as the best measure of damages. However, while…
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Patenting Inventions or Inventing Patents? Strategic Use of Continuations at the USPTO

Cesare Righi and Timothy Simcoe

Patenting Inventions or Inventing Patents? Strategic Use of Continuations at the USPTO

August 2020

Continuations allow inventors to claim technology developed after the original filing date of their patent, leading to concerns about inadvertent infringement and hold-up. We use the link between patents and…
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Idea Diffusion and Property Rights

Boyan Jovanovic and Zhu Wang

NBER

October 2020

We study the innovation and diffusion of technology at the industry level. We derive the full dynamic paths of an industry’s evolution, from birth to its maturity, and we characterize…
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What Happened to U.S. Business Dynamism?

Ufuk Akcigit and Sina T. Ates

NBER

April 2019

In the past several decades, the U.S. economy has witnessed a number of striking trends that indicate a rising market concentration and a slowdown in business dynamism. In this paper,…
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The Way Forward for Intellectual Property Internationally

Stephen Ezell and Nigel Cory

Information Technology and Innovation Foundation

April 2019

IP rights have come under attack from a loose coalition of academics, nongovernmental organizations, multilateral groups, and others whose opposition threatens to undermine innovation, growth, and progress on key global…
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A Toolkit of Policies to Promote Innovation

Nicholas Bloom, John Van Reenen, and Heidi Williams

American Economic Association

August 2019

Innovation is the only way for the most developed countries to secure sustainable long-run productivity growth. For nations farther from the technological frontier, catch-up growth is a viable option, but…
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Antitrust and Innovation: Welcoming and Protecting Disruption

Giulio Federico, Fiona Scott Morton, and Carl Shapiro

NBER

June 2019

The goal of antitrust policy is to protect and promote a vigorous competitive process. Effective rivalry spurs firms to introduce new and innovative products, as they seek to capture profitable…
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Contribution of NIH funding to new drug approvals 2010–2016

Ekaterina Galkina Cleary, Jennifer M. Beierlein, Navleen Surjit Khanuja, Laura M. McNamee, and Fred D. Ledley

PNAS

February 2018

This work examines the contribution of NIH funding to published research associated with 210 new molecular entities (NMEs) approved by the Food and Drug Administration from 2010–2016. We identified >2…
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Software R&D: Revised Treatment in U.S. National Accounts and Related Trends in Business R&D Expenditures

Francisco Moris

National Science Foundation

April 29, 2019

Research and development in software contributes to emerging research, investment, and economic policy areas, such as artificial intelligence, information and communication technologies (ICT), and the digital economy. Accordingly, software R&D…
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The Paper Trail of Knowledge Spillovers: Evidence from Patent Interferences

Ina Ganguli, Jeffrey Lin, and Nicholas Reynolds

Federal Reserve Bank of Philidelphia

January 2019

We show evidence of localized knowledge spillovers using a new database of U.S. patent interferences terminated between 1998 and 2014. Interferences resulted when two or more independent parties submitted identical…
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Global Intellectual Property (IP) Litigation Risk Research Report

Willis Towers Watson

July 24, 2018

In the U.S. alone, an average of 12,000 intellectual property (IP) cases are filed in federal court each year; to put that into context, each year there are approximately 6,400…
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Economics of the Pharmaceutical Industry

Darius N. Lakdawalla

Journal of Economic Literature

June 2018

The pharmaceutical industry accounts for a substantial chunk of the US economy’s research and development investments, which have resulted in significant medical breakthroughs. At the same time, the costs of…
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Beyond the Patents-Prizes Debate

Daniel Jacob Hemel and Lisa Larrimore Ouellette

Texas Law Review

April 2013

Intellectual property scholars have vigorously debated the merits of patents versus prizes for encouraging innovation, with occasional consideration of government grants. But these are not the only options. Perhaps most…
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“Forced Technology Transfer” Policies: Workings in China and Strategic Implications

Dan Prud'homme, Max von Zedtwitz, Joachim Jan Thraen, and Martin Bader

Technology Forecasting and Social Change

September 2018

This paper evaluates the ability of “forced technology transfer” (FTT) policies – i.e., policies meant to increase foreign-domestic technology transfer that simultaneously weaken appropriability of foreign innovations – to contribute…
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Can Patents Deter Innovation? The Anticommons in Biomedical Research

Michael A. Heller and Rebecca S. Eisenberg

Science

May 1, 1998

The “tragedy of the commons” metaphor helps explain why people overuse shared resources. However, the recent proliferation of intellectual property rights in biomedical research suggests a different tragedy, an “anticommons”…
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Intellectual Property Rights and Foreign Direct Investment: A Welfare Analysis

Hitoshi Tanaka and Tatsuro Iwaisako

European Economic Review

April 2014

This paper examines how intellectual property rights (IPR) protection affects innovation and foreign direct investment (FDI) using a North–South quality-ladder model incorporating the exogenous and costless imitation of technology and…
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Inventing the Endless Frontier: The Effects of the World War II Research Effort on Post-war Innovation

Daniel P. Gross and Bhaven N. Sampat

NBER

June 2020

During World War II, the U.S. government launched an unprecedented effort to mobilize science for war: the newly-established Office of Scientific Research and Development (OSRD) entered thousands of R&D contracts…
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The Economic Geography of Innovation

Peter H. Egger and Nicole Loumeau

Centre for Economic Policy Research

November 28, 2018

This paper outlines a quantitative global multi-region model to assess the importance of country-level investment incentives towards innovation at the level of 5,633 regions of heterogeneous size. While incentives vary…
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Government-Funded Research Increasingly Fuels Innovation

L. Fleming, H. Greene, G. Li, M. Marx, and D. Yao

Science

June 21, 2019

Innovation increasingly relies on scientific knowledge. Research to generate that knowledge has historically been funded by both industry and government. Although industry and government research spending was relatively equal in…
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A Survey of Empirical Evidence on Patents and Innovation

Bhaven N. Sampat

NBER

December 2018

This report surveys the empirical literature from economics and related fields on patents and innovation. In particular, it reviews and synthesizes the empirical evidence on patents and first-generation innovation, the…
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How antitrust enforcement can spur innovation: Bell Labs and the 1956 Consent Decree

Martin Watzinger, Thomas Fackler, Markus Nagler, and Monika Schnitzer

VoxEU

February 19, 2017

There is growing concern that dominant companies use patents strategically to keep competitors from entering their market. This column uses the landmark 1956 Consent Decree against Bell Labs to explore…
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Questioning Patent Alienability

Tun-Jen Chiang

Houston Law Review

August 26, 2019

The standard economic rationale for the alienability of property rights is that it facilitates the flow of resources to those who can put it to the most valuable use, or…
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The Effects of Downstream Competition on Upstream Innovation and Licensing

Jean-Etienne de Bettignies, Bulat Gainullin, Hua Fang Liu, and David T. Robinson

NBER

October 2018

We study how competition between two downstream firms affects an upstream innovator’s innovation strategy, which includes selecting how much innovation to produce and whether to license this innovation to one…
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Patent Eligibility and Investment

David O. Taylor

Cardozo Law Review

February 24, 2019

Have the Supreme Court’s recent patent eligibility cases changed the behavior of venture capital and private equity investment firms, and if so how? This Article provides empirical data about investors’…
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Intellectual Property, Economic Development, and the China Puzzle

Peter K. Yu

Intellectual Property, Trade and Development: Strategies to Optimize Economic Development in a TRIPs Plus Era

August 1, 2018

This book chapter examines the relationship between intellectual property protection and economic development. It begins by exploring the conventional linkage between intellectual property protection and foreign direct investment. The chapter…
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The Future of the Pharmaceutical Industry: Beyond Government-Granted Monopolies

Dean Baker

Center for Economic and Policy Research

March 2019

“Patent monopolies on prescription drugs raise their price by one or two orders of magnitude above the free market price. In this way, they are equivalent to tariffs of several…
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The Dual Frontier: Patented Inventions and Prior Scientific Advance

Mohammad Ahmadpoor and Benjamin F. Jones

Science

August 11, 2017

The extent to which scientific advances support marketplace inventions is largely unknown. We study 4.8 million U.S. patents and 32 million research articles to determine the minimum citation distance between…
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Patents and Cumulative Innovation: Causal Evidence from the Courts

Alberto Galasso and Mark Schankerman

NBER

July 2014

Cumulative innovation is central to economic growth. Do patent rights facilitate or impede follow-on innovation? We study the causal effect of removing patent rights by court invalidation on subsequent research…
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Some Facts of High-Tech Patenting

Michael Webb, Nick Short, Nicholas Bloom, and Josh Lerner

NBER

July 2018

Patenting in software, cloud computing, and artificial intelligence has grown rapidly in recent years. Such patents are acquired primarily by large US technology firms such as IBM, Microsoft, Google, and…
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World Investment Report 2018: Investment and New Industrial Policies

United Nations Conference on Trade and Development

World Investment Report 2018

2018

Global flows of foreign direct investment fell by 23 per cent in 2017. Cross-border investment in developed and transition economies dropped sharply, while growth was near zero in developing economies….
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The Consequences of Invention Secrecy: Evidence from the USPTO Patent Secrecy Program in World War II

Daniel P. Gross

NBER

February 2019

This paper studies the effects of the USPTO’s patent secrecy program in World War II, under which approximately 11,200 U.S. patent applications were issued secrecy orders which halted examination and…
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A Generation of Software Patents

James E. Bessen

Boston University School of Law, Law and Economics Research Paper

June 21, 2011

This report examines changes in the patenting behavior of the software industry since the 1990s. It finds that most software firms still do not patent, most software patents are obtained…
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In-Text Patent Citations: A User’s Guide

Kevin A. Bryan, Yasin Ozcan, and Bhaven N. Sampat

NBER

April 2019

We introduce, validate, and provide a public database of a new measure of the knowledge inventors draw on: scientific references in patent specifications. These references are common and algorithmically extractable….
Read more

An Empirical Look at Software Patents

James E. Bessen and Robert M. Hunt

FRB of Philadelphia Working Paper

March 2004

U.S. legal changes have made it easier to obtain patents on inventions that use software. Software patents have grown rapidly and now comprise 15 percent of all patents. They are…
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Entrepreneurial Spillovers from Corporate R&D

Tania Babina and Sabrina T. Howell

NBER

December 2018

This paper documents that corporate R&D investment increases employee departures to entrepreneurship. We use U.S. Census data, and instrument for R&D with its tax credit-induced cost. The ideas or skills…
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Asymmetric Market Failure and Prisoner’s Dilemma in Intellectual Property

Wendy J. Gordon

University of Dayton Law Review

1992

Underlying many contemporary discussions of intellectual product regulation are two implicit economic models: one having to do with primary resource allocation, and one having to do with both allocative effects…
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Intellectual Property Rights and Standard-Setting Organizations

Mark Lemley

California Law Review

April 1, 2002

The role of institutions in mediating the use of intellectual property rights has long been neglected in debates over the economics of intellectual property. In a path-breaking work, Rob Merges…
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Faith-Based Intellectual Property

Mark A. Lemley

Stanford Law School

June 2012

“Suing actual infringers is passe in copyright law. In the digital environment, the real stakes lie in suing those who facilitate infringement by others. There is of course a good…
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Moving Beyond the Valley of Death: Regulation and Venture Capital Investments in Early-Stage Biopharmaceutical Firms

Yujin Kim, Chirantan Chatterjee, and Matthew J. Higgins

NBER

April 1, 2002

Can regulation reduce risks associated with investing in early-stage firms? Using the passage of the European Orphan Drug Act (EU-ODA), we examine this question in the biopharmaceutical industry. We provide…
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Intellectual Property, Economic Development, and the China Puzzle

Peter K. Yu

Michigan State Law School

August 2008

“Since the late 1980s, the Chinese economy has been growing at an enviable average annual rate of about 10 per cent. Accompanying this unprecedented economic development and growth was the…
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