American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Of Mice and Academics: Examining the Effect of Openness on Innovation
American Economic Journal: Economic Policy
vol. 8,
no. 1, February 2016
(pp. 212–52)
(Complimentary)
Abstract
This paper argues that openness, by lowering costs to access existing research, can enhance both early and late stage innovation through greater exploration of novel research directions. We examine a natural experiment in openness: late-1990s NIH agreements that reduced academics' access costs regarding certain genetically engineered mice. Implementing difference-in-differences estimators, we find that increased openness encourages entry by new researchers and exploration of more diverse research paths, and does not reduce the creation of new genetically engineered mice. Our findings highlight a neglected cost of strong intellectual property restrictions: lower levels of exploration leading to reduced diversity of research output. (JEL I23, O31, O33, O34)Citation
Murray, Fiona, Philippe Aghion, Mathias Dewatripont, Julian Kolev, and Scott Stern. 2016. "Of Mice and Academics: Examining the Effect of Openness on Innovation." American Economic Journal: Economic Policy 8 (1): 212–52. DOI: 10.1257/pol.20140062Additional Materials
JEL Classification
- I23 Higher Education; Research Institutions
- O31 Innovation and Invention: Processes and Incentives
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- O34 Intellectual Property and Intellectual Capital