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Compulsory Licensing - Evidence from the Trading with the Enemy Act

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  • Petra Moser
  • Alessandra Voena

Abstract

Compulsory licensing allows firms in developing countries to produce foreign-owned inventions without the consent of foreign patent owners. This paper uses an exogenous event of compulsory licensing after World War I under the Trading with the Enemy Act to examine the long run effects of compulsory licensing on domestic invention. Difference-in-differences analyses of nearly 200,000 chemical inventions suggest that compulsory licensing increased domestic invention by at least 20 percent.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15598.

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Date of creation: Dec 2009
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Publication status: published as Petra Moser & Alessandra Voena, 2012. "Compulsory Licensing: Evidence from the Trading with the Enemy Act," American Economic Review, American Economic Association, vol. 102(1), pages 396-427, February.
Handle: RePEc:nbr:nberwo:15598

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Citations

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Cited by:
  1. Antonelli Cristiano, 2012. "Compulsory licensing: the foundations of an institutional innovation," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201207, University of Turin.
  2. Petra Moser & Alessandra Voena, 2009. "Compulsory Licensing - Evidence from the Trading with the Enemy Act," NBER Working Papers 15598, National Bureau of Economic Research, Inc.
  3. Bond, Eric W. & Saggi, Kamal, 2014. "Compulsory licensing, price controls, and access to patented foreign products," Journal of Development Economics, Elsevier, vol. 109(C), pages 217-228.
  4. Jeffrey Clemens, 2013. "The Effect of U.S. Health Insurance Expansions on Medical Innovation," NBER Working Papers 19761, National Bureau of Economic Research, Inc.
  5. Richard Gilbert, 2011. "A World without Intellectual Property? A Review of Michele Boldrin and David Levine's Against Intellectual Monopoly," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 421-32, June.
  6. Leonid Kogan & Dimitris Papanikolaou & Amit Seru & Noah Stoffman, 2012. "Technological Innovation, Resource Allocation, and Growth," NBER Working Papers 17769, National Bureau of Economic Research, Inc.
  7. Dan Andrews & Chiara Criscuolo, 2013. "Knowledge-Based Capital, Innovation and Resource Allocation," OECD Economics Department Working Papers 1046, OECD Publishing.
  8. Petra Moser & Paul W. Rhode, 2011. "Did Plant Patents Create the American Rose?," NBER Working Papers 16983, National Bureau of Economic Research, Inc.
  9. Ricardo Mora & Iliana Reggio, 2012. "Treatment effect identification using alternative parallel assumptions," Economics Working Papers we1233, Universidad Carlos III, Departamento de Economía.
  10. John Kennedy, 2011. "A critical review of against intellectual monopoly," The Review of Austrian Economics, Springer, vol. 24(1), pages 81-84, March.

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