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Do Formal Intellectual Property Rights Hinder the Free Flow of Scientific Knowledge? An Empirical Test of the Anti-Commons Hypothesis

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Author Info
Fiona Murray
Scott Stern
Abstract

While the potential for intellectual property rights to inhibit the diffusion of scientific knowledge is at the heart of several contemporary policy debates, evidence for the %u201Canti-commons effect%u201D has been anecdotal. A central issue in this debate is how intellectual property rights over a given piece of knowledge affects the propensity of future researchers to build upon that knowledge in their own scientific research activities. This article frames this debate around the concept of dual knowledge, in which a single discovery may contribute to both scientific research and useful commercial applications. A key implication of dual knowledge is that it may be simultaneously instantiated as a scientific research article and as a patent. Such patent-paper pairs are at the heart of our empirical strategy. We exploit the fact that patents are granted with a substantial lag, often many years after the knowledge is initially disclosed through paper publication. The knowledge associated with a patent paper pair therefore diffuses within two distinct intellectual property environments %u2013 one associated with the pre-grant period and another after formal IP rights are granted. Relative to the expected citation pattern for publications with a given quality level, anticommons theory predicts that the citation rate to a scientific publication should fall after formal IP rights associated with that publication are granted. Employing a differences-indifferences estimator for 169 patent-paper pairs (and including a control group of publications from the same journal for which no patent is granted), we find evidence for a modest anti-commons effect (the citation rate after the patent grant declines by between 9 and 17%). This decline becomes more pronounced with the number of years elapsed since the date of the patent grant, and is particularly salient for articles authored by researchers with public sector affiliations.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11465.

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Date of creation: Jul 2005
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Handle: RePEc:nbr:nberwo:11465

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out

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  1. Guido Bünstorf, 2006. "Is Academic Entrepreneurship Good or Bad for Science? Empirical Evidence from the Max Planck Society," Papers on Economics and Evolution 2006-17, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  2. Nicolas van Zeebroeck & Bruno van Pottelsberghe & Dominique Guellec, 2008. "Patents and Academic Research: A State of the Art," Working Papers CEB 08-013.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB). [Downloadable!]
  3. Pierre Azoulay & Waverly Ding & Toby Stuart, 2006. "The Impact of Academic Patenting on the Rate, Quality, and Direction of (Public) Research Output," NBER Working Papers 11917, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Pierre Azoulay & Andrew Stellman & Joshua Graff Zivin, 2006. "PublicationHarvester: An Open-Source Software Tool for Science Policy Research," NBER Working Papers 12039, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Jeffrey L. Furman & Scott Stern, 2006. "Climbing Atop the Shoulders of Giants: The Impact of Institutions on Cumulative Research," NBER Working Papers 12523, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Carlos Rosell & Ajay Agrawal, 2006. "University Patenting: Estimating the Diminishing Breadth of Knowledge Diffusion and Consumption," NBER Working Papers 12640, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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