Patent pools and innovation in substitute technologies—evidence from the 19th‐century sewing machine industry

Lampe, Ryan; Moser, Petra

doi:10.1111/1756-2171.12035

Cited by 40 publications

(22 citation statements)

References 29 publications

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“…Here I discuss the most important differences, while further details the case of gins, it is reasonable to expect innovation to respond to changing conditions within a one to three year time frame. Another piece of evidence from the same time period comes from Lampe and Moser (2013). They found evidence that the introduction of a patent pool in the sewing machine industry led to an increase in patents of substitute inventions that spiked one to three years after the pool began.…”

Section: Sources Of Supplymentioning

confidence: 99%

Necessity Is the Mother of Invention: Input Supplies and Directed Technical Change

Hanlon

2015

Econometrica

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The leading theory of directed technical change, developed by Acemoglu (2002), offers two main predictions. First, when inputs are sufficiently substitutable, a change in relative input supplies will generate technical change that augments inputs which become relatively more abundant. Second, if this effect is sufficiently strong, the relative price of the relatively more abundant inputs will increase -the strong induced-bias hypothesis. This paper provides the first empirical test of these predictions using the shock to the British cotton textile industry caused by the U.S. Civil War (1861-1865). Using detailed new patent data, I show that the shock increased innovation in Britain directed towards taking advantage of Indian cotton, which had became relatively more abundant. The relative price of Indian cotton first declined and then rebounded, consistent with strong induced-bias. Given my elasticity of substitution estimates, these findings are consistent with the predictions of the theory.

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Section: Sources Of Supplymentioning

confidence: 99%

Necessity Is the Mother of Invention: Input Supplies and Directed Technical Change

Hanlon

2015

Econometrica

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“…A companion study of pools that formed across a broad range of 20 industries in the 1930s, however, unambiguously confirms the decline in patenting (Lampe and Moser 2014). In the absence of effective antitrust, dominant firms used a pool to further limit and discourage competition by outside firms.…”

Section: Similar To Today Litigation Risks Were Extremely Damagingmentioning

confidence: 81%

“…Data on patents and firm entry indicate that the creation of a patent pool diverted innovation away from the pool technology towards a substitute technology that was already understood to be inferior (Lampe and Moser 2014). As long as the pool created a significant wedge between license fees for members and outsiders, outsiders entered with the substitute because they needed to avoid licensing and litigation.…”

Section: Similar To Today Litigation Risks Were Extremely Damagingmentioning

confidence: 99%

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Patents and Innovation in Economic History

Moser¹

2016

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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 identificationhave 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. 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.

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“…The empirical evidence on the effects of patent pools on firms’ innovative activities in ICTs is mixed. Historical evidence is in Lampe and Moser (, ). The authors investigate the effects of patent pools on innovation incentives looking at the sewing machine industry in the late 19th century.…”

Section: Patent Poolsmentioning

confidence: 99%

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

Comino

Manenti

Thumm

2018

Journal of Economic Surveys

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During the last few decades, the number of patents in information and communication technologies has increased considerably. An increasing number of patents and the associated fragmentation of IP rights have generated a series of potentially problematic consequences. Patent thickets, royalty stacking, the emergence of patent assertion entities, increased patent litigationparticularly around standard essential patents -and the difficulties with defining fair, reasonable, and nondiscriminatory licensing terms are some of the most debated issues in the literature that we review in this paper. We devote a specific section of our survey to patent quality, currently one of the most debated issues surrounding the patent system. In our analysis, we mix theoretical and empirical arguments with a more policy-oriented reasoning. This allows us to better position the different issues in the relevant political and economic context.

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Patent pools and innovation in substitute technologies—evidence from the 19th‐century sewing machine industry

Cited by 40 publications

References 29 publications

Necessity Is the Mother of Invention: Input Supplies and Directed Technical Change

Necessity Is the Mother of Invention: Input Supplies and Directed Technical Change

Patents and Innovation in Economic History

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

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