NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Does Compulsory Licensing Discourage Invention? Evidence From German Patents After WWI

Joerg Baten, Nicola Bianchi, Petra Moser

NBER Working Paper No. 21442
Issued in July 2015
NBER Program(s):Development of the American Economy, Law and Economics, Productivity, Innovation, and Entrepreneurship

This paper investigates whether compulsory licensing – which allows governments to license patents without the consent of patent-owners – discourages invention. Our analysis exploits new historical data on German patents to examine the effects of compulsory licensing under the US Trading-with-the-Enemy Act on invention in Germany. We find that compulsory licensing was associated with a 28 percent increase in invention. Historical evidence indicates that, as a result of war-related demands, fields with licensing were negatively selected, so OLS estimates may underestimate the positive effects of compulsory licensing on future inventions.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21442

Users who downloaded this paper also downloaded* these:
Moser, Ohmstedt, and Rhode w21443 Patent Citations and the Size of the Inventive Step - Evidence from Hybrid Corn
Sallee, West, and Fan w21441 Do Consumers Recognize the Value of Fuel Economy? Evidence from Used Car Prices and Gasoline Price Fluctuations
Atkin and Donaldson w21439 Who's Getting Globalized? The Size and Implications of Intra-national Trade Costs
Lau and Rosen w21432 Are Universities Becoming More Unequal?
Dinkelman w21440 Long Run Health Repercussions of Drought Shocks: Evidence from South African Homelands
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us