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Do Patent Pools Encourage Innovation? Evidence from 20 U.S. Industries under the New Deal

Year: 2012

Type: report

Abstract: Patent pools, which allow competing firms to combine their patents, have emerged as a prominent mechanism to resolve litigation when multiple firms own patents for the same technology.This paper takes advantage of a window of regulatory tolerance under the New Deal to investigate the effects of pools on innovation within 20 industries.Difference-in-differences regressions imply a 16 percent decline in patenting in response to the creation of a pool.This decline is driven by technology fields in which a pool combined patents for substitute technologies by competing firms, suggesting that unregulated pools may discourage innovation by weakening competition to improve substitutes.

Source: National Bureau of Economic Research

DOI: 10.3386/w18316

Authors: Ryan Lampe, Petra Moser

Institutions: DePaul University, National Bureau of Economic Research, University of California, Berkeley, Stanford University

Language: English

Topic: Intellectual Property and Patents

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

Funders: DePaul University, Stanford Institute for Economic Policy Research

OpenAlex ID: W1562293376

Cites: 55

Cited by: 21

Related to: 10