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Catching-Up and Falling Behind: Knowledge Spillover from American to German Machine Toolmakers

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  • RICHTER, RALF
  • STREB, JOCHEN

Abstract

Today, German machine toolmakers accuse their Chinese competitors of violating patent rights and imitating German technology. A century ago, German machine toolmakers used the same methods to imitate American technology. To understand the dynamics of this catching-up process, we use patent statistics to analyze firms’ activities between 1877 and 1932. We show that German firms deployed imitating strategies in the late nineteenth century and the 1920s to catch-up to their American competitors. The German administration supported this strategy by stipulating a patent law that discriminated against foreign patent holders and by delaying the granting of patents to foreign applicants.

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  • Richter, Ralf & Streb, Jochen, 2011. "Catching-Up and Falling Behind: Knowledge Spillover from American to German Machine Toolmakers," The Journal of Economic History, Cambridge University Press, vol. 71(4), pages 1006-1031, December.
    • Handle: RePEc:cup:jechis:v:71:y:2011:i:04:p:1006-1031_00
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    2. Makiko Hino & Mototsugu Fukushige, 2014. "Catching up and falling behind in technological progress: the experience of the textile and chemical industries in Italy between 1904 and 1937," Discussion Papers in Economics and Business 14-14, Osaka University, Graduate School of Economics.
    3. 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.
    4. Baten, Joerg & Bianchi, Nicola & Moser, Petra, 2017. "Compulsory licensing and innovation – Historical evidence from German patents after WWI," Journal of Development Economics, Elsevier, vol. 126(C), pages 231-242.
    5. Lehmann-Hasemeyer, Sibylle H. & Streb, Jochen, 2018. "Discrimination against Foreigners. The Wuerttemberg Patent Law in Administrative Practice," Working Papers 7, German Research Foundation's Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour", Humboldt University Berlin.
    6. Sibylle Lehmann-Hasemeyer & Jochen Streb, 2016. "The Berlin Stock Exchange in Imperial Germany: A Market for New Technology?," American Economic Review, American Economic Association, vol. 106(11), pages 3558-3576, November.
    7. Saiz, Patricio & Amengual, Rafael, 2016. "Knowledge Disclosure, Patent Management, and the Four-Stroke Engine Business," Working Papers in Economic History 2016/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    8. Oliver Falck & Christina Guenther & Stephan Heblich & William R. Kerr, 2013. "From Russia with love: the impact of relocated firms on incumbent survival," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 419-449, May.
    9. , & Streb, Jochen, 2015. "The Berlin Stock Exchange in Imperial Germany ? a Market for New Technology?," CEPR Discussion Papers 10558, C.E.P.R. Discussion Papers.
    10. Mike W Peng & David Ahlstrom & Shawn M Carraher & Weilei (Stone) Shi, 2017. "An institution-based view of global IPR history," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 893-907, September.
    11. Evgeniy Kutsenko, 2012. "A Rational Cluster Strategy: Manoeuvring between Market and Government Failures," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 6(3), pages 6-15.
    12. 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.
    13. Joost Veenstra & Herman de Jong, 2015. "A Tale of Two Tails: Plant Size Variation and Comparative Labor Productivity in U.S. and German Manufacturing in the Early 20th Century," CEH Discussion Papers 032, Centre for Economic History, Research School of Economics, Australian National University.
    14. 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.
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    16. Cristiano Andrea Ristuccia & Adam Tooze, 2013. "Machine tools and mass production in the armaments boom: Germany and the United States, 1929–44," Economic History Review, Economic History Society, vol. 66(4), pages 953-974, November.
    17. Yong-Jeong Kim & Sang-Gun Lee & Silvana Trimi, 2021. "Industrial linkage and spillover effects of the logistics service industry: an input–output analysis," Service Business, Springer;Pan-Pacific Business Association, vol. 15(2), pages 231-252, June.
    18. Santos LÓPEZ-LEYVA & Miriam Liliana CASTILLO-ARCE & José David LEDEZMA-TORRES & Jesús Armando RÍOS-FLORES, 2014. "Economic Growth from a Theoretical Perspective of Knowledge Economy: An Empirical Analysis for Mexico," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 2(5), pages 217-239, August.
    19. Francesco Cinnirella & Jochen Streb, 2013. "The Role of Human Capital and Innovation in Prussian Economic Development," CESifo Working Paper Series 4391, CESifo.

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