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Compulsory Licensing: Evidence from the Trading with the Enemy Act

  • Petra Moser

    ()

    (Stanford University)

  • Alessandra Voena

    (Stanford University)

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

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Paper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 09-026.

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Date of creation: Jul 2010
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Handle: RePEc:sip:dpaper:09-026
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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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