Does Patent Strategy Shape the Long-Run Supply of Public Knowledge? Evidence from Human Genetics

Abstract:     
Knowledge-based firms seeking competitive advantage often draw on the public knowledge stream - ideas embedded in public commons institutions - as the foundation for private knowledge - ideas firms protect through private intellectual property (IP) institutions. However, we have a limited understanding of the converse relationship: the impact of private knowledge strategies on public knowledge production. We examine this question in human genetics, where policymakers debate expanding IP ownership over the human genome. Our econometric analysis shows that gene patents decrease public genetic knowledge, with broader patent scope, private-sector ownership, complexity of the patent landscape, and the gene's commercial relevance exacerbating their effect.

Keywords: Knowledge, Patent Strategy, IP Institutions, Innovations, Genetics

JEL Classifications: O32, O34, O38

Accepted Paper Series