The effect of the opioid crisis on patenting

Abstract

The opioid crisis in the United States has resulted in a dramatic increase in overdose deaths over the last two decades. This crisis has created an economic ripple affecting an important engine of growth: patenting. Using patent data from the United States Patent and Trademark Office (USPTO), we show a negative effect of opioid prescriptions on the amount of patenting that occurs in a county. Despite inventive activities being hampered by the negative economic effects that opioid misuse creates in an area, we also find evidence that the opioid crisis incentivizes inventors to relocate. Similarly, we find a reduction in the number of high-tech firms and STEM graduates. We also show that the opioid crisis dramatically reduces the number of white and non-white inventors.