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Benkler I 39
Intellectual Property/Lerner/Benkler: In perhaps one of the most startling papers on the economics of innovation published in the past few years, Josh Lerner looked at changes in intellectual property law in sixty countries over a period of 150 years. He studied close to three hundred policy changes, and found that, both in developing countries and in economically advanced countries that already have patent law, patenting both at home and abroad by domestic firms of the country that made the policy change, a proxy for their investment in research and development, decreases slightly when patent law is strengthened!(1) The implication is that when a country—either one that already has a significant patent system, or a developing nation—increases its patent protection, it slightly decreases the level of investment in innovation by local firms.


1. Josh Lerner, “Patent Protection and Innovation Over 150 Years” (working paper no. 8977, National Bureau of Economic Research, Cambridge, MA, 2002).


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Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution.
The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Lerner, Josh
Benkler I
Yochai Benkler
The Wealth of Networks: How Social Production Transforms Markets and Freedom New Haven 2007


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