Patenting and Innovation
Technology Adoption
Trade Policy
Bond, Eric W., & Luther, Z. R. (2025). International patent families: when to apply. Review of International Economics, 33: 450-465. Open Access Link.
Abstract: We model the decision of an innovating firm on where and when to make cross-border patent applications given the rules of the Paris Convention and Patent Cooperation Treaty (PCT). We show that an innovating firm will have an incentive to apply at the beginning (end) of the Paris Convention application window when returns are front-loaded (back-loaded). The preliminary review provided by a PCT application expedites the review process in subsequent national applications, leading to the selection of firms with more productive innovations into the PCT route for cross-border applications. We also show that the PCT's preliminary application may be used to provide information on the patentability of an innovation. To provide empirical evidence on these predictions, we compare the patenting behavior of semiconductor applicants with those of pharmaceutical applicants, where the former has among the shortest times from innovation to market and the latter the longest. Consistent with the predictions of the model, we find that pharmaceutical applications are 15 percentage points likelier than semiconductor applications to be filed at the Paris deadline for national applications under the Paris convention. PCT applications for pharmaceuticals are 32 percentage points likelier to be filed at the Paris deadline. We also find that as many as 30% of PCT applications may result in information about patentability that makes subsequent applications unprofitable.
Luther, Z. R., Swinton, S. M., & Van Deynze, B. (2022). Potential Supply of Midwest Cropland For Conversion to In-Field Prairie Strips. Land Economics, 98(2): 274–291. Open Access Link.
Abstract: Prairie strips planted into crop fields offer multiple environmental benefits. This study estimates the willingness of U.S. farmers to convert 5% of their largest corn-soybean field to prairie strips in exchange for payment. Using stated preference results to estimate land supply, we find that 20% of farmers are willing to adopt prairie strips at payments equivalent to average Conservation Reserve Program rental rates, corresponding to potential conversion of 90,000 acres on 1.8 million acres of cropland. Farmers are likelier to adopt in smaller fields and when they perceive that prairie strips will benefit environmental quality or agricultural productivity.
Luther, Z. R., Swinton, S. M., & Van Deynze, B. (2020). What drives voluntary adoption of farming practices that can abate nutrient pollution?. Journal of Soil and Water Conservation, 75(5): 640-650. Open Access Link.
Abstract: Agricultural nutrient runoff and leaching into groundwater can impose societal costs that may be external to farmer decisions. Farmers can reduce the environmental impact of nutrient losses by adopting conservation and precision nutrient diagnostic and application practices. We examine the determinants of adoption decisions of such practices using mail survey data from a large, stratified sample of corn (Zea mays L.) and soybean (Glycine max [L.] Merr.) farmers in the US eastern Corn Belt. Via an ordered probit that captures both adoption and intent to adopt eight different practices, we evaluate a broad range of potential factors driving adoption of conservation and precision agriculture practices. We find that farmer objectives other than income, such as preferences for environmental amenities or social status, were important adoption drivers for conservation and precision technologies, respectively. Livestock farms had a distinct adoption profile, with greater likelihood to adopt cover cropping and less to adopt precision technologies. Farmers who participated in work- ing lands programs were more likely to adopt both cover cropping and precision soil testing technologies. Policies and messaging to encourage voluntary adoption of practices to reduce agricultural nutrient loss should account for farmer objectives, farming systems, and existing policy incentives.
Luther, Z. R. (2024). National treatment or national barriers? Evidence from international patent families.