Scientific breakthroughs and patent scope: The impact of the human genome project on early stage drug patents

Sebastian Jayaraj, Michelle Gittelman

Research output: Contribution to conferencePaper

1 Scopus citations

Abstract

How scientific maps influence technological search and innovation is not well understood. In this study, we analyze the impact of the human genome, a detailed scientific map, on drug discovery. In the drug industry, deep understanding of disease is essential for designing new therapeutics. Two mechanisms are explored by which scientific maps influence technological search: 1) predictive power and precision of the map can alter existing search strategies and novelty of outcomes 2) public nature of the map can attract new entrants, leading to more competition and stronger efforts to protect intellectual property. Analyses reveal a sharp increase in small-molecule drug patenting and patented compounds coinciding with the public release of gene sequences. Using a difference-in-differences estimation we find that the availability of the human genome is an exogenous shock that increases novel compound production across the industry by 64%, controlling for new tools like combinatorial chemistry. Together, these reveal an interesting finding' open access scientific maps not only increase the rate and technological novelty of invention, but also spur industry competition suggesting that publicly-funded science like the human genome can enhance both quantity and quality of industry innovation.

Original languageEnglish (US)
DOIs
StatePublished - Jan 1 2018
Event78th Annual Meeting of the Academy of Management, AOM 2018 - Chicago, United States
Duration: Aug 10 2018Aug 14 2018

Conference

Conference78th Annual Meeting of the Academy of Management, AOM 2018
CountryUnited States
CityChicago
Period8/10/188/14/18

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All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation
  • Industrial relations

Cite this

Jayaraj, S., & Gittelman, M. (2018). Scientific breakthroughs and patent scope: The impact of the human genome project on early stage drug patents. Paper presented at 78th Annual Meeting of the Academy of Management, AOM 2018, Chicago, United States. https://doi.org/10.5465/AMBPP.2018.234