American Economic Review Vol. 109 No. 1 2019

How Do Patents Affect Follow-On Innovation? Evidence from the Human Genome

Bhaven N. Sampat¹; Heidi Williams²

¹ Mailman School of Public Health, Columbia University, 722 W 168th Street, Room 486, New York, NY 10032, and NBER (email: ) · ² Department of Economics, MIT, 77 Massachusetts Avenue, E52-440, Cambridge, MA 02139, and NBER (email: )

Abstract

We investigate whether patents on human genes have affected follow-on scientific research and product development. Using administrative data on successful and unsuccessful patent applications submitted to the US Patent and Trademark Office, we link the exact gene sequences claimed in each application with data measuring follow-on scientific research and commercial investments. Using these data, we document novel evidence of selection into patenting: patented genes appear more valuable--prior to being patented--than non-patented genes. This evidence of selection motivates two quasi-experimental approaches, both of which suggest that on average gene patents have had no quantitatively important effect on follow-on innovation.

DOI

10.1257/aer.20151398

Volume

109

Issue

1

Pages

203-236

Language

en

Sources

bibtex:phds-export.bib openalex crossref

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