Weaker copyrights encouraged the creation of follow-on science by a reduction in access costs, allowing scientists at less affluent institutions to use existing knowledge in new follow-on research

Effects of Copyrights on Science: Evidence from the WWII Book Republication Program. Barbara Biasi and Petra Moser. Feb 2020. https://www.dropbox.com/s/3go6y47fplwt6nf/BRP.pdf

Abstract: Copyrights, which establish intellectual property in music, science,and other creative goods, are intended to encourage creativity. Yet, copyrights also raise the cost of accessing existing work - potentially discouraging future innovation.This paper uses an exogenous shift towards weak copyrights(and low access costs) during WWII to examine the potentially adverse effects of copyrights on science. Using two alternative identification strategies, we show that weaker copyrights encouraged the creation of follow-on science, measured by citations.This change is driven by a reduction in access costs, allowing scientists at less affluent institutions to use existing knowledge in new follow-on research.

Previously: Effects of Copyrights on Science - Evidence from the US Book Republication Program
Barbara Biasi, Petra Moser. NBER Working Paper No. 24255, January 2018. https://www.nber.org/papers/w24255

Abstract: Copyrights for books, news, and other types of media are a critical mechanism to encourage creativity and innovation. Yet economic analyses continue to be rare, partly due to a lack of experimental variation in modern copyright laws. This paper exploits a change in copyright laws as a result of World War II to examine the effects of copyrights on science. In 1943, the US Book Republication Program (BRP) granted US publishers temporary licenses to republish the exact content of German-owned science books. Using new data on citations, we find that this program triggered a large increase in citations to German-owned science books. This increase was driven by a significant reduction in access costs: Each 10 percent decline in the price of BRP book was associated with a 43 percent increase in citations. To investigate the mechanism by which lower book prices influence science, we collect data on library holdings across the United States. We find that lower prices helped to distribute BRP books across US libraries, including less affluent institutions. Analyses of the locations of citing authors further indicate that citations increased most for locations that gained access to BRP books. Results are confirmed by two alternative measures of scientific output: new PhDs and US patents that use knowledge in BRP books.