Patent Pools and the Direction of Innovation - Evidence from the 19th-century Sewing Machine Industry
Patent pools allow a group of firms to combine their patents as if they were a single firm. Theoretical models predict that pools encourage innovation in pool technologies, albeit at the cost of innovation in substitutes. Empirical evidence is scarce because modern pools are too recent to allow empirical analyses. This article examines data on patents and innovations by new firms for a historical pool in the sewing machine industry (1856-1877) to examine effects on innovation. Contrary to theoretical predictions, this analysis suggests that pools may discourage innovation in pool technologies and shift R&D towards technologically inferior substitutes.
|Date of creation:||Nov 2011|
|Publication status:||published as “Patent Pools and Innovation in Substitute Technologies – Evidence from the U.S. Sewing Machine Industry” (with Ryan Lampe) http://ssrn.com/abstract=1468062. RAND Journal of Economics, 2014, Volume 44, Issue 4, pp. 757-778.|
|Note:||DAE IO PR|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Petra Moser, 2005.
"How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs,"
American Economic Review,
American Economic Association, vol. 95(4), pages 1214-1236, September.
- Petra Moser, 2003. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World Fairs," NBER Working Papers 9909, National Bureau of Economic Research, Inc.
- Dequiedt, V. & Versaevel, B., 2004.
"Patent pools and the dynamic incentives to R&D,"
200412, Grenoble Applied Economics Laboratory (GAEL).
- Vianney Dequiedt & Bruno Versaevel, 2007. "Patent Pools and the Dynamic Incentives to R&D," Post-Print halshs-00142497, HAL.
- Bruno Versaevel & Vianney Dequiedt, 2007. "Patent Pools and the Dynamic Incentives to R&D," Working Papers 0703, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
- Hall, B. & Jaffe, A. & Trajtenberg, M., 2001.
"The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools,"
2001-29, Tel Aviv.
- Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
- Hall, Bronwyn H & Jaffe, Adam B & Trajtenberg, Manuel, 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," CEPR Discussion Papers 3094, C.E.P.R. Discussion Papers.
- Ryan L. Lampe & Petra Moser, 2009. "Do Patent Pools Encourage Innovation? Evidence from the 19th-Century Sewing Machine Industry," NBER Working Papers 15061, National Bureau of Economic Research, Inc.
- Usher, Abbott Payson, 1956. "The United States Patent System: Legal and Economic Conflicts in American Patent History. By Floyd L. Vaughan. Norman, Okla.: University of Oklahoma Press, 1956. Pp. xvi, 355. $8.50," The Journal of Economic History, Cambridge University Press, vol. 16(03), pages 412-414, September.
- Jaskold Gabszewicz, J. & Thisse, J. -F., 1979.
"Price competition, quality and income disparities,"
Journal of Economic Theory,
Elsevier, vol. 20(3), pages 340-359, June.
- GABSZEWICZ, Jean J. & THISSE, Jacques-François, "undated". "Price competition, quality and income disparities," CORE Discussion Papers RP 370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Steven Berry & Joel Waldfogel, 2003. "Product Quality and Market Size," NBER Working Papers 9675, National Bureau of Economic Research, Inc.Full references (including those not matched with items on IDEAS)