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How Do Patents Affect Follow-On Innovation? Evidence from the Human Genome.

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Gene patents have not significantly impacted follow-on scientific research or product development. Analysis of patent data reveals that while patented genes seem more valuable initially, overall innovation remains unaffected by gene patenting.

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Area of Science:

  • Biotechnology
  • Intellectual Property Law
  • Innovation Studies

Background:

  • Patents on human genes are a complex issue, potentially impacting scientific research and commercial product development.
  • Understanding the real-world effects of gene patents is crucial for policy and innovation.
  • Previous research has debated the influence of gene patents on subsequent innovation.

Purpose of the Study:

  • To investigate the impact of human gene patents on follow-on scientific research.
  • To assess the effect of gene patents on subsequent product development and commercial investments.
  • To provide empirical evidence on the relationship between gene patenting and innovation.

Main Methods:

  • Utilized administrative data from the US Patent and Trademark Office on patent applications.
  • Linked gene sequences from patent applications to data on scientific research and commercial investments.
  • Employed two quasi-experimental approaches to analyze the causal effect of gene patents.

Main Results:

  • Documented evidence of selection into patenting, indicating patented genes were perceived as more valuable pre-patenting.
  • Found no quantitatively significant effect of gene patents on follow-on scientific research.
  • Observed no substantial impact of gene patents on subsequent product development and commercial investments.

Conclusions:

  • Gene patents, on average, have not had a quantitatively important effect on follow-on innovation.
  • The perceived value of genes prior to patenting influences selection into the patenting process.
  • The findings suggest that current gene patenting practices may not be a major impediment to scientific and commercial progress.