Exclusive Rights Stimulate Design Around: How Circumventing Edison’s Lamp Patent Promoted Competition and New Technology Development

ABSTRACT Designing around patents is prevalent but not often appreciated as a means by which promote economic development through competition. We provide novel empirical study of the extent and timing designing patent claims. filing rate incandescent lamp-related during 1878–1898 find that enforcement Edison’s lamp in 1891–1894 stimulated surge patenting. studied specific design features lamps described these compared them with claimed invention to create count noninfringing designs date. Most circumvented claims creating substitute technologies enable participation market. Our forward citation analysis shows some had introduced pioneering prior art for new fields. This indicates duplicative research contributes dynamic efficiency. show Edison did suppress advance electric lighting market power owner weakened this patent’s enforcement. propose investigation effects essential establishing degree conferred patents. JEL: D21 - Firm Behavior: Theory, D22 Empirical Analysis, K11 Property Law, K21 Antitrust L12 Monopoly; Monopolization Strategies, N8 Micro-Business History, O31 Innovation Invention: Processes Incentives, O32 Management Technological R&D, O33 Change: Choices Consequences, O34 Intellectual Capital