Compulsory Licensing of Patents
5 important questions on Compulsory Licensing of Patents
What is compulsory licensing?
What important aspect of compulsory licensing have policy debates neglected?
When does compulsory licensing may discourage domestic invention?
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What could enable domestic firms to establish their own independent production?
- own independent production strengthens incentives to invest in complementary research and skills and creates opportunities for learning by doing
What are the main findings of Moser & Voena (2012): Compulsory Licensing of Patents? (5)
- To measure the effects of compulsory licensing, this paper compares changes in annual patents for chemical inventions by domestic inventors across technologies that were differentially affected by the TWEA
- This strategy allows us to control for alternative factors that may have encouraged domestic invention
- such as improvements in education and scientific training
- Technologies are measured at the level of narrowly-defined subclasses of United States Patent Office (USPTO) patents
- Chemical inventions in some subclasses were affected by compulsory licensing
- Specifically, subclasses are defined as treated if a domestic firm was issued a compulsory license for one of 699 enemy-owned chemical patents under the TWEA
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