Compulsory Licensing: Evidence from the Trading with the Enemy Act

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...

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Bibliographic Details
Published in:The American economic review 2012-02, Vol.102 (1), p.396-427
Main Authors: Moser, Petra, Voena, Alessandra
Format: Article
Language:eng
Subjects:
R&D
Online Access:Get full text
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Summary: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-indifferences analyses of nearly 130,000 chemical inventions suggest that compulsory licensing increased domestic invention by 20 percent.
ISSN:0002-8282
1944-7981