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Compulsory Licensing: Evidence from the Trading with the Enemy Act

  • Petra Moser
  • Alessandra Voena

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 effects of compulsory licensing on domestic invention. Difference-in-differences analyses of nearly 130,000 chemical inventions suggest that compulsory licensing increased domestic invention by 20 percent. (JEL D45, L24, N42, O31, O34)

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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 1 (February)
Pages: 396-427

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:1:p:396-427
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  2. Petra Moser, 2007. "Why Don't Inventors Patent?," NBER Working Papers 13294, National Bureau of Economic Research, Inc.
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  11. 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.
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  18. Tandon, Pankaj, 1982. "Optimal Patents with Compulsory Licensing," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 470-86, June.
  19. Petra Moser, 2012. "Innovation without Patents: Evidence from World’s Fairs," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 43 - 74.
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