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Strong Steam, Weak Patents, or the Myth of Watt's Innovation-Blocking Monopoly, Exploded

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  • George Selgin
  • John L. Turner

Abstract

James Watt's 1769 patent is widely supposed to have stood in the way of the development of high-pressure steam technology until it finally expired in 1800. We dispute this popular claim. We show that although it is true that high-pressure steam technology developed only after the expiration of Watt's patent, the delay was due to factors other than that patent itself, including the widely held opinion that the use of high-pressure engines were excessively risky. Indeed, Watt's monopoly rights may actually have hastened the development of the high-pressure steam engine by inspiring Richard Trevithick to revive a supposedly obsolete technology so as to invent around them.

Suggested Citation

  • George Selgin & John L. Turner, 2011. "Strong Steam, Weak Patents, or the Myth of Watt's Innovation-Blocking Monopoly, Exploded," Journal of Law and Economics, University of Chicago Press, vol. 54(4), pages 841-861.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/658495
    DOI: 10.1086/658495
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    References listed on IDEAS

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    Cited by:

    1. Patricio Sáiz & Rubén Amengual, 2018. "Do patents enable disclosure? Strategic innovation management of the four-stroke engine," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 975-997.
    2. Markus Nagler & Monika Schnitzer & Martin Watzinger, 2022. "Fostering the Diffusion of General Purpose Technologies: Evidence from the Licensing of the Transistor Patents," Journal of Industrial Economics, Wiley Blackwell, vol. 70(4), pages 838-866, December.

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