Do Patent Pools Encourage Innovation? Evidence from the Nineteenth-Century Sewing Machine Industry
Members of a patent pool agree to use a set of patents as if they were jointly owned by all members and license them as a package to other firms. This article uses the example of the first patent pool in U.S. history, the Sewing Machine Combination (1856–1877) to perform the first empirical test of...
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| Published in: | The Journal of economic history Vol. 70; no. 4; pp. 898 - 920 |
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| Main Authors: | , |
| Format: | Journal Article |
| Language: | English |
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New York, USA
Cambridge University Press
01-12-2010
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| Abstract | Members of a patent pool agree to use a set of patents as if they were jointly owned by all members and license them as a package to other firms. This article uses the example of the first patent pool in U.S. history, the Sewing Machine Combination (1856–1877) to perform the first empirical test of the effects of a patent pool on innovation. Contrary to theoretical predictions, the sewing machine pool appears to have discouraged patenting and innovation, in particular for the members of the pool. Data on stitches per minute, an objectively quantifiable measure of innovation, confirm these findings. |
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| AbstractList | Members of a patent pool agree to use a set of patents as if they were jointly owned by all members and license them as a package to other firms. This article uses the example of the first patent pool in U.S. history, the Sewing Machine Combination (1856-1877) to perform the first empirical test of the effects of a patent pool on innovation. Contrary to theoretical predictions, the sewing machine pool appears to have discouraged patenting and innovation, in particular for the members of the pool. Data on stitches per minute, an objectively quantifiable measure of innovation, confirm these findings. Reprinted by permission of Cambridge University Press. An electronic version of this article can be accessed via the internet at http://journals.cambridge.org Members of a patent pool agree to use a set of patents as if they were jointly owned by all members and license them as a package to other firms. This article uses the example of the first patent pool in U.S. history, the Sewing Machine Combination (1856–1877) to perform the first empirical test of the effects of a patent pool on innovation. Contrary to theoretical predictions, the sewing machine pool appears to have discouraged patenting and innovation, in particular for the members of the pool. Data on stitches per minute, an objectively quantifiable measure of innovation, confirm these findings. Members of a patent pool agree to use a set of patents as if they were jointly owned by all members and license them as a package to other firms. This article uses the example of the first patent pool in U.S. history, the Sewing Machine Combination (1856-1877) to perform the first empirical test of the effects of a patent pool on innovation. Contrary to theoretical predictions, the sewing machine pool appears to have discouraged patenting and innovation, in particular for the members of the pool. Data on stitches per minute, an objectively quantifiable measure of innovation, confirm these findings. [PUBLICATION ABSTRACT] |
| Author | Moser, Petra Lampe, Ryan |
| Author_xml | – sequence: 1 givenname: Ryan surname: Lampe fullname: Lampe, Ryan email: rlampe@depaul.edu organization: Assistant Professor, Department of Economics, DePaul University, 1 East Jackson Blvd., Suite 6200, Chicago, IL 60604-2287. E-mail: rlampe@depaul.edu – sequence: 2 givenname: Petra surname: Moser fullname: Moser, Petra email: pmoser@stanford.edu organization: Assistant Professor, Department of Economics, Stanford University, Stanford, CA 94305; and NBER. E-mail: pmoser@stanford.edu |
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| Copyright | Copyright © The Economic History Association 2010 Copyright © 2010 The Economic History Association |
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| DOI | 10.1017/S0022050710000768 |
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| Notes | We wish to thank the Wisconsin State Historical Society for granting access to the Singer Archives, and Jim Bessen, Nick Bloom, Tim Bresnahan, Paul David, Eric Hilt, Mark Lemley, Tom Nicholas, Ross Thomson, and seminar participants at the Santa Fe Institute and Stanford for helpful comments. Luke Brennan and Marina Kutyavina provided valuable research assistance. istex:5B399CDAAD7FC23047A5964A46B71CFD4624A710 PII:S0022050710000768 ArticleID:00076 ark:/67375/6GQ-R9X0NJ70-V ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
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fullname: Layne-Farrar – ident: S0022050710000768_ref21 doi: 10.3386/w8498 – volume-title: Envy of the World: A History of the U.S. Economy and Big Business year: 2006 ident: S0022050710000768_ref6 contributor: fullname: Botti – volume-title: “Patent Pools and Cross-Licensing in the Shadow of Patent Litigation.” year: 2003 ident: S0022050710000768_ref7 doi: 10.2139/ssrn.466062 contributor: fullname: Choi – volume-title: Handbook of American Business History year: 2000 ident: S0022050710000768_ref62 contributor: fullname: Whitten – volume-title: MeasuringWorth year: 2008 ident: S0022050710000768_ref25 contributor: fullname: Johnston – ident: S0022050710000768_ref42 doi: 10.1093/cje/28.3.347 – volume-title: Report of the Twenty-Seventh Exhibition of American Manufactures: Held in the City of Philadelphia, from October 6th, to November 12th. year: 1874 ident: S0022050710000768_ref16 – volume-title: The Textile American ident: S0022050710000768_ref49 – volume-title: Uniting the Tailors: Trade Unionism Amongst the Tailoring Workers of London and Leeds, 1870—1939 year: 1995 ident: S0022050710000768_ref26 contributor: fullname: Kershen – volume-title: “Institutions for Intellectual Property Transactions: The Case of Patent Pools.” year: 1999 ident: S0022050710000768_ref37 contributor: fullname: Merges – ident: S0022050710000768_ref44 doi: 10.2307/3103252 – volume-title: Tullidge's Histories, (volume II) Containing the History of All the Northern, Eastern and Western Counties of Utah: Also the Counties of Southern Idaho. year: 1889 ident: S0022050710000768_ref53 contributor: fullname: Thomson – volume-title: “Patent Pools and the Direction of Technical Change: Evidence from the Sewing Machine Combination, 1856—1877.” year: 2009 ident: S0022050710000768_ref29 contributor: fullname: Lampe |
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| SubjectTerms | 19th century Business innovation Data analysis Economic history Engineering Fees Innovation Inventions Licensing Litigation Patent pool Profits Sewing Sewing machines Stitches Technological innovation Textile industry Tropical diseases U.S.A |
| Title | Do Patent Pools Encourage Innovation? Evidence from the Nineteenth-Century Sewing Machine Industry |
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