The Battle over Patents History and Politics of Innovation

An examination of how the patent system works, imperfections and all, to incentivize innovation

Do patents facilitate or frustrate innovation? Lawyers, economists, and politicians who have staked out strong positions in this debate often attempt to validate their claims by invoking the historical record--but they frequently get the history wrong.

The Battle over Patents gets it right. Bringing together thoroughly researched essays from prominent historians and social scientists, this volume traces the long and contentious history of patents and examines how they have worked in practice. Editors Stephen H. Haber and Naomi R. Lamoreaux show that patent systems are the result of contending interests at different points in production chains battling over economic surplus. The larger the potential surplus, the more extreme are the efforts of contending parties-now and in the past-to search out, generate, and exploit any and all sources of friction. Patent systems, as human creations, are therefore necessarily ridden with imperfections. This volume explores these shortcomings and explains why, despite all the debate, historically US-style patent systems still dominate all other methods of encouraging inventive activity.

Stephen H. Haber is the A.A. and Jeanne Welch Milligan Professor of Humanities and Sciences and the Peter and Helen Bing Senior Fellow at the Hoover Institution at Stanford University. In addition, he is a professor of political science, professor of history, and professor of economics (by
courtesy), and a
senior fellow of the Stanford Institute for Economic Policy Research.

Naomi R. Lamoreaux is Stanley B. Resor Professor of Economics and History at Yale University and a Research Associate at the National Bureau of Economic Research. She is the author of The Great Merger Movement in American Business, 1895-1904 and Insider Lending: Banks, Personal Connections, and
Economic Development in Industrial New England, and published numerous articles on business, economic, and financial history.

Preface Stephen Haber and Naomi R. Lamoreaux

Introduction Stephen Haber and Naomi R. Lamoreaux

Chapter 1. Patents in the History of the Semiconductor Industry: The Ricardian Hypothesis
Alexander Galetovic

Chapter 2. Do Patents Foster International Technology Transfer? Evidence from Spanish Steelmaking, 1850-1930
Victor Menaldo

Chapter 3. Did James Watt's Patent(s) Really Delay the Industrial Revolution?
Sean Bottomley

Chapter 4. Dousing the Fires of Patent Litigation
Christopher Beauchamp

Chapter 5. Ninth Circuit Nursery: Patent Litigation and Industrial Development on the Pacific Coast, 1891-1925
Steven W. Usselman

Chapter 6. The Great Patent Grab
Jonathan M. Barnett

Chapter 7. The Long History of Software Patenting in the United States
Gerardo Con Diaz

Chapter 8. History Matters: National Innovation Systems and Innovation Policies in Nations
B. Zorina Khan

Index