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NATIONAL BUREAU OF ECONOMIC RESEARCH
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Nicola Bianchi

Kellogg School of Management
Northwestern University
2211 Campus Drive
Evanston, IL 60208
Tel: 847/467-5672

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NBER Program Affiliations: ED
NBER Affiliation: Faculty Research Fellow

NBER Working Papers and Publications

July 2015Does Compulsory Licensing Discourage Invention? Evidence From German Patents After WWI
with Joerg Baten, Petra Moser: w21442
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.

Published: Joerg Baten, Nicola Bianchi, Petra Moser, Compulsory licensing and innovation – Historical evidence from German patents after WWI, Journal of Development Economics, Volume 126, 2017, Pages 231-242, ISSN 0304-3878, https://doi.org/10.1016/j.jdeveco.2017.01.002.

 
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