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Cumulative innovation is central to economic growth. Do patent rights facilitate or impede follow-on innovation? We study the causal effect of removing patent rights by court invalidation on subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeals for the Federal(More)
  • Jochen Mankart, Giacomo Rodano, +6 authors Rachel Ngai
  • 2007
Every year 400,000 entrepreneurs fail and 20% of them file for bankruptcy. Thus the personal bankruptcy law has important implications for entrepreneurship. The option to declare bankruptcy encourages entrepreneurship through providing insurance since entrepreneurs may default in bad times. However, perfectly competitive financial intermediaries take the(More)
Patents award innovators a fixed period of market exclusivity, e.g., 20 years in the United States. Yet, since in many industries firms file patents at the time of discovery (" invention ") rather than first sale (" commercialization "), effective patent terms vary: inventions that commercialize at the time of invention receive a full patent term, whereas(More)
We study how the market for innovation affects enforcement of patent rights. Conventional wisdom associates the gains from trade with comparative advantage in manufacturing or marketing. We show that these gains imply that patent transactions should increase litigation risk. We identify a new source of gains from trade, comparative advantage in patent(More)
We present evidence from a natural field experiment involving nearly 100,000 individuals on the effects of offering economic incentives for blood donations. Subjects who were offered economic rewards to donate blood were more likely to donate, and more so the higher the value of the rewards. They were also more likely to attract others to donate, spatially(More)
Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these two localized externalities and their impact on regional innovation. We examine MSA-level patent data(More)
We examine whether open source software (OSS) patent pools contributed by large software incumbents influence new OSS product entry by start-up software firms. In particular, we analyze the impact of a major OSS patent pool—the Patent Commons—established by IBM in 2005. We find that increases in the size of the OSS patent pool related to a software segment(More)
Dallas, and the USPTO. We are grateful to Daniel McCurdy, Christopher Reohr, and Shashank Tiwari of RPX Corporation for graciously providing data used in this study. We also thank Mike Lloyd and Doris Spielthenner of Ambercite for generously providing data. The authors gratefully acknowledge funding from the National Science Foundation (grants CCF-1216095(More)
We study the impact of small firms on innovation in regions where large labs are present. Small firms generate demand for specialized services that lower entry costs for others. This effect is particularly relevant in the presence of large firms that spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. We examine MSA-level(More)