TY - JOUR AU - Moser,Petra AU - Voena,Alessandra TI - Compulsory Licensing - Evidence from the Trading with the Enemy Act JF - National Bureau of Economic Research Working Paper Series VL - No. 15598 PY - 2009 Y2 - December 2009 UR - http://www.nber.org/papers/w15598 L1 - http://www.nber.org/papers/w15598.pdf N1 - Author contact info: Petra Moser CASBS and Department of Economics Stanford University 579 Serra Mall Stanford, CA 94305-6072 Tel: 650-723-9303 Fax: (650) 725-5702 E-Mail: pmoser@stanford.edu Alessandra Voena Department of Economics University of Chicago 1126 East 59th Street Chicago, IL 60637 Tel: 773/702-9127 Fax: 773/702-8430 E-Mail: avoena@uchicago.edu AB - Compulsory licensing allows firms in developing countries to produce foreign-owned inventions without the consent of foreign patent owners. This paper uses an exogenous event of compulsory licensing after World War I under the Trading with the Enemy Act to examine the long run effects of compulsory licensing on domestic invention. Difference-in-differences analyses of nearly 200,000 chemical inventions suggest that compulsory licensing increased domestic invention by at least 20 percent. ER -