Do Patents Weaken the Localization of Innovations? Evidence from World's Fairs

Abstract

This article takes advantage of an exogenous shift towards patenting in chemicals to test whether patents contribute to the geographic diffusion of innovations. Data on U.S. innovations that were exhibited at four world fairs between 1851 and 1915 suggest that innovative activity became less localized after patenting rates increased. These changes cannot be explained by changes in the localization of chemical production or economy-wide changes in the localization of innovations.

Patterns of specialization and economic complexity through the lens of universal exhibitions, 1855-1900

“…This allows her to demonstrate that patent laws help to determine the direction of technical change. Using a similar approach, and extending the coverage to two other exhibitions held in the United States (Chicago 1893 andSan Francisco 1915), the same author shows that patents encouraged the geographic diffusion of innovations ( Moser, 2011 ), and that patents represent a minor and industry-dependent share of innovation ( Moser, 2012 ). Squicciarini and Voigtländer (2015) also use the number of exhibits in London's 1851 exhibition as a measure of technological and scientific prowess.…”

Military spending and innovation: learning from 19th-century world fair exhibition data

“…There is a general lack of cross-country work on the link between the military sector and innovation (Mowery, 2010). 5 Therefore, we complement prior studies using innovation data from historical world exhibitions (e.g., Moser, 2005Moser, , 2011Moser, , 2012 by introducing the military sector into this context. While economists and historians agree that the military has been important for recent technological advances, the military revolutions of the 19 th century have remained a blind spot.…”