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Technology and Innovation

Paper Session

Friday, Jan. 7, 2022 3:45 PM - 5:45 PM (EST)

Hosted By: Cliometric Society
  • Chair: Shari Eli, University of Toronto

The Consequences of Radical Patent-Regime Change

Felix Selgert
,
Bonn Univeristy
Alexander Donges
,
Mannheim University

Abstract

This paper analyzes the consequences of radical patent-regime change by exploiting a natural experiment: the forced adoption of the Prussian patent system in territories annexed after the Austro-Prussian War of 1866. Compared to other German states, Prussia granted patents more restrictively by setting higher novelty requirements, while patent fees were much lower. By using novel hand-collected data, we show that the forced adoption of the Prussian patent law caused a massive drop in the number of patents per capita in annexed territories. By contrast, we find a significantly positive effect of the patent-regime change on World’s Fair exhibits per capita, which we use as a proxy for non-patented innovation. We interpret this finding as evidence that restrictions on the granting of patents, which foster competition and technology diffusion, can be conducive for the generation of innovation.

'Mechanization Takes Command': Powered Machinery and Production Times in Late Nineteenth Century American Manufacturing

Robert Margo
,
Boston University
Jeremy Atack
,
Vanderbilt University
Paul W. Rhode
,
University of Michigan

Abstract

During the nineteenth century, U.S. manufacturers shifted from “hand” to “machine labor,” fundamentally changing production tasks, jobs, and job requirements. This paper uses digitized data from an 1899 US Commissioner of Labor report to estimate the frequency and impact of the use of inanimate power on production times. About half of production operations were mechanized; and use of inanimate power raised productivity, accounting for one-quarter to one-third of the overall productivity advantage of machine labor. Additional factors, such as the increased division of labor and adoption of high-volume production, also played important roles in raising productivity.

All Is Water: Technological Complementarities and Path Dependence in Indian Agriculture

Aaditya Dar
,
Indian School of Business

Abstract

What are the myriad ways in which history impacts economic development? I examine this question in the context of structural transformation in Indian agriculture which dramatically improved food production but has led to an environmental crisis. I find that districts with colonial investments in irrigation i.e. a canal built before 1931 were associated with successful adoption of ‘Green Revolution’ practices between 1955-1985. Additionally, districts where canals were proposed in 1857 but never built continue to have worse agricultural outcomes more than a century later, despite having similar land suitability. Finally, I show that places that adopted modern practices are, paradoxically, facing depleting groundwater today. The findings suggest that control over water is an important mechanism through which history has persisting effects.

Was Domar Right? Serfdom and the Land-Labour Ratio in Bohemia

Alexander Klein
,
University of Kent
Sheilagh Ogilvie
,
University of Oxford
Jeremy Edwards
,
Cambridge University

Abstract

Are institutions shaped by economic fundamentals? Labor-coercion institutions such as serfdom, which profoundly restricted economic growth, were ascribed by Domar (1970) to high land-labor ratios. But other theoretical approaches argued the opposite, and historical evidence appeared to refute this idea. We carry out the first multivariate analysis of factor proportions and serfdom, using data for over eleven thousand serf villages in Bohemia (the Czech lands). We hold constant political-economy variables by analyzing a specific serf society, and also control for village and estate characteristics that may have obscured the impact of factor endowments in previous studies. The net effect of higher land-labor ratios, we find, was to increase labor coercion. The impact intensified when landlords extracted labor in human-animal teams, and diminished as land-labor ratios rose. Outside options in the urban sector exerted no effect. Controlling for other factors, we conclude, institutions are indeed partly shaped by economic fundamentals.

Discussant(s)
Petra Moser
,
New York University
Martin Rotemberg
,
New York University
Latika Hartmann
,
Naval Postgraduate School
Erik Hornung
,
University of Cologne
JEL Classifications
  • N7 - Transport, Trade, Energy, Technology, and Other Services
  • O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights