Compulsory Licensing - Evidence from the Trading with the Enemy Act

46 Pages Posted: 22 Dec 2009  

Petra Moser

Leonard N. Stern School of Business - Department of Economics; National Bureau of Economic Research (NBER)

Alessandra Voena

University of Chicago

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Date Written: December 2009

Abstract

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 long run effects of compulsory licensing on domestic invention. Difference-in-differences analyses of nearly 200,000 chemical inventions suggest that compulsory licensing increased domestic invention by at least 20 percent.

Suggested Citation

Moser, Petra and Voena, Alessandra, Compulsory Licensing - Evidence from the Trading with the Enemy Act (December 2009). NBER Working Paper No. w15598. Available at SSRN: https://ssrn.com/abstract=1525776

Petra Moser (Contact Author)

Leonard N. Stern School of Business - Department of Economics ( email )

269 Mercer Street
New York, NY 10003
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alessandra Voena

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

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