Monika Schnitzer Does Compulsory Licensing Work as an Effective Antitrust Tool?

Monika Schnitzer holds the Chair for Comparative Economics at the Ludwig Maximilian University Munich. She has been a Visiting Professor at Harvard University, the University of California, Berkeley, Yale University, and Stanford University. Among her main research interests are the innovation and internationalization strategies of companies and obstacles caused by financial restrictions, contractual insecurities, and political risks. Her advisory roles include that of deputy chairwoman of the Commission of Experts for Research and Innovation that was established by the German government in 2007. For her academic work, she has received many awards, including the Order of Merit of the Federal Republic of Germany (2005), as well as the Bavarian Order of Merit (2012).

Area of Research

Innovation and Multinational Firms

since 1996

Full Professor

Ludwig Maximilian University Munich (Ludwig-Maximilians-Universität München)

Department of Economics

2017

Visiting Professor

Harvard University

2013

Visiting Professor

Harvard University

2009

Visiting Professor

University of California, Berkeley

2004

Visiting Professor

Yale University

2000

Visiting Professor

Stanford University

1995-1996

Visiting Full Professor

Ludwig Maximilian University Munich (Ludwig-Maximilians-Universität München)

Department of Economics

1991-1995

Assistant Professor

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Department of Economics

1992

Visiting Scholar

Massachusetts Institute of Technology (MIT)

1992

Visiting Lecturer

Boston University

1987-1991

Teaching Assistant

University of Cologne (Universität zu Köln)

Department of Economics

1995

Habilitation in Economics

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

1991

PhD

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

1986

Diploma in Economics

University of Cologne (Universität zu Köln)

- Bavarian Academy of Sciences and Humanities

- German Economic Association (President 2015-16)

- European Economic Association

- American Economic Association

- European Academy of Sciences and Art

Prizes

- Order of Merit of Bavaria (2012)

- Teaching Award of Bavarian Government (2011)

- Order of Merit of Federal Republic of Germany (2005)

- Academy Prize of Academy of Sciences and Humanities Northrhine-Westphalia (1996)

Innovation is very important for economic growth and, often, small start-ups are a key generator of innovation. For this, access to patents is essential for innovative start-ups. However, a few dominant companies often hold these patents in a market field and refuse to license their technology to others, as MONIKA SCHNITZER explains in this video. She has investigated whether antitrust measures, such as compulsory licensing, are an effective tool to deal with this problem. Using the 1956 consent decree as a case study, her team examined whether the compulsory licensing measures imposed on the Bell System – a monopolistic provider of telecommunications services in the United States in the 1950s – promoted follow-on innovation. Indeed, the researchers found that it worked in fields outside of telecommunications, but not so much inside Bell’s own market field. Analyzing the reasons for this, this empirical study demonstrates that compulsory licensing can be an effective antitrust remedy under certain conditions.

LT Video Publication DOI: https://doi.org/10.21036/LTPUB10528

How Antitrust Enforcement Can Spur Innovation: Bell Labs and the 1956 Consent Decree

  • Martin Watzinger, Thomas A Fackler, Markus Nagler and Monika Schnitzer
  • CEPR Discussion Paper No. DP11793
  • Published in 2017
Martin Watzinger, Thomas A Fackler, Markus Nagler and Monika Schnitzer. "How Antitrust Enforcement Can Spur Innovation: Bell Labs and the 1956 Consent Decree." CEPR Discussion Paper No. DP11793 (2017).

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