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Catching-Up and Falling Behind: Knowledge Spillover from American to German Machine Toolmakers

Published online by Cambridge University Press:  14 November 2011

RALF RICHTER*
Affiliation:
Research Assistant, Hans Böckler Foundation, Hans-Böckler-Straße 39, 40476 Düsseldorf, Germany. E-mail: Ralf-Richter@boeckler.de.
JOCHEN STREB*
Affiliation:
Professor, Department of Economics and Social Sciences, University of Hohenheim (570a), 70593 Stuttgart, Germany. E-mail: j-streb@uni-hohenheim.de.

Abstract

Today, German machine toolmakers accuse their Chinese competitors of violating patent rights and imitating German technology. A century ago, German machine toolmakers used the same methods to imitate American technology. To understand the dynamics of this catching-up process, we use patent statistics to analyze firms’ activities between 1877 and 1932. We show that German firms deployed imitating strategies in the late nineteenth century and the 1920s to catch-up to their American competitors. The German administration supported this strategy by stipulating a patent law that discriminated against foreign patent holders and by delaying the granting of patents to foreign applicants.

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Type
ARTICLES
Copyright
Copyright © The Economic History Association 2011

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