Of Patents and Property
James E. Bessen and Michael J. Meurer
Boston University School of Law Working Paper 09-18
Abstract
Do patents behave substantially like property rights in tangible assets, in that they encourage development and innovation? This article notes that historical evidence, cross-country evidence, economic experiments, and estimates of net benefits all indicate that general property rights institutions have a substantial direct effect on economic growth. Conversely, with a few important exceptions like chemicals and pharmaceuticals, empirical evidence indicates that intellectual property rights have at best only a weak and indirect effect on economic growth. Further, it appears that for public firms in most industries today, patents may actually discourage investment in innovation for fear of winding up on the losing side of a patent fight, and routine injunctive relief from patent protection may contribute to this problem.
Keywords: property, intellectual property, property rights, patent, property law, patent law, Industrial Revolution, economic growth, natural economic experiments, Eastern European economies, Eastern European transition, free-riders, generic drug
JEL Classifications: D2, D23, D4, K1, K11, L65, 014, 012, 016, 03, 031, 032, 034, P51
Accepted Paper Series
Size: 712 KB
Est. download time @ 28.8K: 24 seconds
Adobe Acrobat Reader v3.01 or greater is required to view this paper.
To obtain a free copy, click the button below
James E. Bessen Contact Information
jbessen@researchoninnovation.org
Michael J. Meurer Contact Information
Boston University School of Law
765 Commonwealth Ave
Boston, MA 02215
USA
(617) 353-6292
This draft can be also found at the link below: