Patent pools and innovation in substitute technologies-evidence from the 19th-century sewing machine industry.

Patent pools, which combine complementary patents of competing firms, are expected to increase overall welfare but potentially discourage innovation in substitutes for the pool technology. This article exploits a new historical data set on changes in patenting and firm entry for a clearly defined po...

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Detalles Bibliográficos
Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 4; pp. 757 - 779
Autores principales: Lampe, Ryan, Moser, Petra
Formato: Artículo
Publicado: Wiley-Blackwell Winter2013
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:Patent pools, which combine complementary patents of competing firms, are expected to increase overall welfare but potentially discourage innovation in substitutes for the pool technology. This article exploits a new historical data set on changes in patenting and firm entry for a clearly defined pool technology and substitutes in the 19th-century sewing machine industry. This analysis reveals a substantial increase in innovation for an-albeit technologically inferior-substitute technology. Historical evidence suggests that the creation of a pool-diverted innovation toward an inferior substitute technology by creating differential license fees and litigation risks.