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Do Patents Weaken the Localization of Innovations? Evidence from World's Fairs

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  • Moser, Petra

Abstract

This article takes advantage of an exogenous shift towards patenting in chemicals to test whether patents contribute to the geographic diffusion of innovations. Data on U.S. innovations that were exhibited at four world fairs between 1851 and 1915 suggest that innovative activity became less localized after patenting rates increased. These changes cannot be explained by changes in the localization of chemical production or economy-wide changes in the localization of innovations.

Suggested Citation

  • Moser, Petra, 2011. "Do Patents Weaken the Localization of Innovations? Evidence from World's Fairs," The Journal of Economic History, Cambridge University Press, vol. 71(2), pages 363-382, June.
  • Handle: RePEc:cup:jechis:v:71:y:2011:i:02:p:363-382_00
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    Cited by:

    1. Drivas, Kyriakos & Economidou, Claire & Karkalakos, Sotiris & Tsionas, Efthymios G., 2016. "Mobility of knowledge and local innovation activity," European Economic Review, Elsevier, vol. 85(C), pages 39-61.
    2. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    3. Danzer, Alexander M. & Danzer, Natalia & Feuerbaum, Carsten, 2023. "Military Spending and Innovation: Learning from 19th Century World Fair Exhibition Data," IZA Discussion Papers 16034, Institute of Labor Economics (IZA).
    4. Jeffrey Lin, 2014. "The paper trail of knowledge transfers," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 1-6.
    5. Domini, Giacomo, 2022. "Patterns of specialization and economic complexity through the lens of universal exhibitions, 1855-1900," Explorations in Economic History, Elsevier, vol. 83(C).
    6. Alexander Donges & Felix Selgert, 2019. "Technology transfer via foreign patents in Germany, 1843–77," Economic History Review, Economic History Society, vol. 72(1), pages 182-208, February.
    7. Eduardo Melero & Neus Palomeras & David Wehrheim, 2020. "The Effect of Patent Protection on Inventor Mobility," Management Science, INFORMS, vol. 66(12), pages 5485-5504, December.
    8. James Bessen, 2010. "Communicating Technical Knowledge," Working Papers 1001, Research on Innovation.
    9. Suominen, Arho & Deschryvere, Matthias & Narayan, Rumy, 2023. "Uncovering value through exploration of barriers - A perspective on intellectual property rights in a national innovation system," Technovation, Elsevier, vol. 123(C).
    10. Petra Moser, 2016. "Patents and Innovation in Economic History," NBER Working Papers 21964, National Bureau of Economic Research, Inc.
    11. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.
    12. Ugo M. Gragnolati & Alessandro Nuvolari, 2023. "Innovation, localized externalities, and the British Industrial Revolution, 1700-1850," LEM Papers Series 2023/26, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    13. Petra Moser, 2012. "Patent Laws and Innovation: Evidence from Economic History," NBER Working Papers 18631, National Bureau of Economic Research, Inc.
    14. B. Zorina Khan, 2014. "Of Time and Space: Technological Spillovers among Patents and Unpatented Innovations during Early U.S. Industrialization," NBER Working Papers 20732, National Bureau of Economic Research, Inc.
    15. Sweet, Cassandra Mehlig & Eterovic Maggio, Dalibor Sacha, 2015. "Do Stronger Intellectual Property Rights Increase Innovation?," World Development, Elsevier, vol. 66(C), pages 665-677.
    16. Jeffrey L. Furman & Markus Nagler & Martin Watzinger, 2021. "Disclosure and Subsequent Innovation: Evidence from the Patent Depository Library Program," American Economic Journal: Economic Policy, American Economic Association, vol. 13(4), pages 239-270, November.
    17. Francesco Cinnirella & Jochen Streb, 2017. "The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia," Journal of Economic Growth, Springer, vol. 22(2), pages 193-227, June.
    18. Drivas, Kyriakos & Fafaliou, Irene & Fampiou, Elpiniki & Yannelis, Demetrius, 2014. "The Effect of Patent Grant on the Geographic Reach of Patent Sales," MPRA Paper 60099, University Library of Munich, Germany.
    19. Baruffaldi, Stefano H. & Simeth, Markus, 2020. "Patents and knowledge diffusion: The effect of early disclosure," Research Policy, Elsevier, vol. 49(4).
    20. Francesco Cinnirella & Jochen Streb, 2013. "The Role of Human Capital and Innovation in Prussian Economic Development," CESifo Working Paper Series 4391, CESifo.
    21. Joerg Baten & Nicola Bianchi & Petra Moser, 2015. "Does Compulsory Licensing Discourage Invention? Evidence From German Patents After WWI," NBER Working Papers 21442, National Bureau of Economic Research, Inc.
    22. Michael J. Andrews, 2021. "Historical patent data: A practitioner's guide," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(2), pages 368-397, May.
    23. Capponi, Giovanna & Martinelli, Arianna & Nuvolari, Alessandro, 2022. "Breakthrough innovations and where to find them," Research Policy, Elsevier, vol. 51(1).
    24. Haoyang Song & Jianhua Hou & Yang Zhang, 2022. "Patent protection: does it promote or inhibit the patented technological knowledge diffusion?," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(5), pages 2351-2379, May.
    25. Giacomo Domini, 2019. "Exhibitions, patents, and innovation in the early twentieth century: evidence from the Turin 1911 International Exhibition," LEM Papers Series 2019/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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