Disclosure and Subsequent Innovation: Evidence from the Patent Depository Library Program

How important is access to patent documents for subsequent innovation? We examine the expansion of the USPTO Patent Library system after 1975. Patent libraries provided access to patents before the Internet. We find that after patent library opening, local patenting increases by 8–20 percent relative to similar regions. Additional analyses suggest that disclosure of technical information drives this effect: inventors increasingly take up ideas from outside their region, and the effect is strongest in technologies where patents are more informative. We thus provide evidence that disclosure plays an important role in cumulative innovation. (JEL D83, K11, O31, O34, R11)

Human Biases Limit Cumulative Innovation

Is technological advancement constrained by biases in human cognition? People in all societies build on discoveries inherited from previous generations, leading to cumulative innovation. However, biases in human learning and memory may influence the process of knowledge transmission, potentially limiting this process. Here we show that cumulative innovation in a continuous optimization problem is systematically constrained by human biases. In a large (n = 1,250) behavioral study using a transmission chain design, participants searched for virtual technologies in one of four environments after inheriting a solution from previous generations. Participants converged on worse solutions in environments misaligned with their biases. These results substantiate a mathematical model of cumulative innovation in Bayesian agents, highlighting formal relationships between cultural evolution and distributed stochastic optimization. Our findings provide experimental evidence that human biases can limit the advancement of knowledge in a controlled laboratory setting, reinforcing concerns about bias in creative, scientific, and educational contexts.

Human biases limit cumulative innovation

Is technological advancement constrained by biases in human cognition? People in all societies build on discoveries inherited from previous generations, leading to cumulative innovation. However, biases in human learning and memory may influence the process of knowledge transmission, potentially limiting this process. Here, we show that cumulative innovation in a continuous optimization problem is systematically constrained by human biases. In a large ( n = 1250) behavioural study using a transmission chain design, participants searched for virtual technologies in one of four environments after inheriting a solution from previous generations. Participants converged on worse solutions in environments misaligned with their biases. These results substantiate a mathematical model of cumulative innovation in Bayesian agents, highlighting formal relationships between cultural evolution and distributed stochastic optimization. Our findings provide experimental evidence that human biases can limit the advancement of knowledge in a controlled laboratory setting, reinforcing concerns about bias in creative, scientific and educational contexts.

Increasing the Level of Abstraction as a Strategy for Accelerating the Adoption of Complex Technologies

Many new technologies are complex and embody high levels of technical sophistication, and applying them should require significant knowledge and experience. Yet, the rapid adoption and incorporation of these technologies into other innovations seems inconsistent with the expertise needed to make them work. In this paper, we propose increasing levels of abstraction as a strategy for speeding the adoption of new technologies. Higher-level abstractions package complexity in ways that makes them easier to understand and recombine, and they decrease the resources needed by firms to deploy sophisticated technical know-how. Increasing the level of abstraction is a way to push forward the innovative frontier by making such difficult-to-use technologies readily accessible to other innovators. Although this framing has been used in engineering and software development to describe modular encapsulation and cumulative innovation, we propose its use in the management literature to describe more broadly the uptake of new technologies and their facile recombination. This framing casts a different light on cumulative innovation and exposes new managerial questions to explore

Commanding Nature by Obeying Her: A Review Essay on Joel Mokyr’s A Culture of Growth

Why is modern society capable of cumulative innovation? In A Culture of Growth: The Origins of the Modern Economy, Joel Mokyr persuasively argues that sustained technological progress stemmed from a change in cultural beliefs. The change occurred gradually during the seventeenth and eighteenth centuries and was fostered by an intellectual elite that formed a transnational community and adopted new attitudes toward the creation and diffusion of knowledge, setting the foundation for the ethos of modern science. The book is a significant contribution to the growing literature that links culture and economics. This review discusses Mokyr’s historical analysis in relation to the following questions: What is culture and how should we use it in economics? How can culture explain modern economic growth? Will the culture of growth that caused modern prosperity persist in the future? (JEL N00, N13, N33, O30, O52, Z10)