Podcast Summary
Theory of unlimited economic growth through innovation isn't as simple as passing patent laws: Creating a conducive environment for innovation involves more than just laws; it requires consistent enforcement, safety, and a stable economic and social climate.
While the theory of unlimited economic growth through innovation is appealing, it's not as simple as just passing patent laws and waiting for innovation to happen. Lisa Cook, a prominent economist, questioned this theory based on her personal experiences and observations in Russia during the 1990s. Despite having patent laws, Russia lacked innovation due to a lack of enforcement and safety concerns. The process of creating a conducive environment for innovation involves more than just laws; it requires consistent enforcement, safety, and a stable economic and social climate.
The role of safety and equality in fostering innovation: Economist Lisa Cook suspects that safety and equality might be crucial factors for innovation, as she found during her research on patents filed by black and white inventors during the period of segregation and violence against black people.
Economist Lisa Cook suspects that the theory assuming equal enforcement of law for fostering innovation may be incomplete. She shares her personal experience of discrimination during the period of desegregation and believes that safety and equality might also be crucial factors. Cook aims to test her hypothesis by comparing the number of patents filed by black and white inventors during the period of segregation and violence against black people. Despite the challenges, she spent over a decade gathering data and creating new datasets to investigate this blind spot in economics, which could have significant implications for the wealth of black Americans and entire economies. This research was far from simple, and Cook's work highlights the importance of considering the role of safety and equality in innovation.
African-American Inventors and Patent Filings: Research by Lisa Delpit revealed that African-American patent filings increased during times of peace and progress, such as after the Civil War. Identifying these inventors was a challenge due to lack of race information in patent records, requiring cross-referencing with census data and various sources.
During periods of increased violence and lawlessness, African-American inventors filed fewer patents, while they filed more patents during times of peace and progress. However, identifying the race of patent filers was a significant challenge, as race is not recorded on patent records. Researcher Lisa Delpit had to cross-reference common African-American names in census records and use various sources like historical newspaper articles, scholarly papers, and biographies to identify inventors. She was able to identify 726 patents filed by African Americans between 1870 and 1940 and plotted the number of patents filed per year on a graph. The graph showed that African-American innovation grew during times of progress and equal rights, such as after the Civil War when the 14th Amendment was passed. This period saw inventions like elevators, rotary engines, and telephones. Overall, Delpit's research highlights the importance of understanding the historical context of patent filings and the challenges of identifying underrepresented groups in patent data.
Patent filings by African Americans declined significantly after discriminatory laws and racial violence: Discriminatory laws and racial violence led to a decrease in patent filings by African Americans, with notable dips after Plessy versus Ferguson in 1896 and the Tulsa Race Massacre in 1921.
The patent filing data from African Americans saw significant declines around the time of the Plessy versus Ferguson Supreme Court ruling in 1896, which enforced racial segregation. This was due to the passing of discriminatory laws that restricted access to libraries, commercial districts, and opportunities to interact with other inventors. One inventor, Garrett Morgan, used a cover story with a Native American to present himself at trade shows. However, many African American inventors lost their jobs after Plessy versus Ferguson, including a top patent officer at the US Patent Office and a top inventor at the US Postal Service. Another major dip in patent filings occurred in 1921, which was linked to the Tulsa Race Massacre, a devastating incident of racial violence that destroyed the affluent Black Wall Street neighborhood. Despite rigorous testing, Lisa couldn't explain this dip as a calculation error.
Impact of Tulsa race riots on African American patent filings: The Tulsa race riots led to the loss of over 1,100 potential African American inventions due to lack of intellectual property protection, causing significant economic consequences.
The lack of protection for intellectual property during the Tulsa race riots significantly impacted patent filings by African Americans, leading to a substantial loss of potential inventions. This trend was evident throughout the late 1800s and early 1900s, resulting in over 1,100 lost inventions. The economic impact of these lost patents is equivalent to that of a medium-sized European country at the time. The case of Percy Julian, who invented an improved way to make cortisone, illustrates the real-world consequences of this loss. Lisa's findings challenge the theory that strong patent laws alone will lead to innovation for all, particularly for African Americans, and have significant implications for both individual wealth and national economies.
Navigating the Challenges of Publishing Economic Research on Racial Violence: Publishing economic research on racial violence can be a complex process due to debates over historical context and definitions. Persistence and support from colleagues are crucial in overcoming academic obstacles.
The publishing process in economics can be a challenging and lengthy journey, especially when the subject matter involves aspects of American history and racial violence. Lisa's experience of publishing her groundbreaking paper on the impact of racial violence on innovation faced numerous hurdles, including debates over definitions and historical context. Despite receiving endorsements from three Nobel Prize-winning economists, she encountered resistance from journal editors who questioned the relevance of her research to economics and the lack of familiarity with US history among some readers. Lisa responded by writing a black history paper alongside her economic one to help contextualize her findings. It took a decade for her research to be published, highlighting the importance of persistence and support from colleagues in overcoming academic obstacles. The experience underscores the need for a more nuanced understanding of history and its impact on economic phenomena.
Peak African-American patenting in 1899, yet progress has not been made: Economic analysis must consider all variables, including human experiences and complexities, to accurately understand and promote economic growth
Economics, with its focus on data and models, can sometimes overlook crucial variables that significantly impact economic growth. Dr. Lisa Cook's research on African-American patenting highlights this issue. The peak year for African-American patents per capita was in 1899, and despite advancements, this record has not been surpassed. This underscores the importance of considering all variables in economic analysis, not just for specific demographics but for the economy as a whole. America, as a cautionary tale, still seems to be learning this lesson. The lack of inclusion or consideration of certain variables can hinder economic progress. It's a reminder that economics, while striving for objectivity, must not overlook the human experiences and complexities that shape economic outcomes.
