% WARNING: This file may contain UTF-8 (unicode) characters. % While non-8-bit characters are officially unsupported in BibTeX, you % can use them with the biber backend of biblatex % usepackage[backend=biber]{biblatex} @techreport{NBERw25068, title = "When does Product Liability Risk Chill Innovation? Evidence from Medical Implants", author = "Galasso, Alberto and Luo, Hong", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "25068", year = "2018", month = "September", doi = {10.3386/w25068}, URL = "http://www.nber.org/papers/w25068", abstract = {Liability laws designed to compensate for harms caused by defective products may also affect innovation. We examine this issue by exploiting a major quasi-exogenous increase in liability risk faced by US suppliers of polymers used to manufacture medical implants. Difference-in-differences analyses show that this surge in suppliers’ liability risk had a large and negative impact on downstream innovation in medical implants, but it had no significant effect on upstream polymer patenting. Our findings suggest that liability risk can percolate throughout a vertical chain and may have a significant chilling effect on downstream innovation.}, }