policymakers demonstrate

62 Philippe Aghion and Ufuk Akcigit
cross-US-state panel data). Incidentally, universities are a sector in which formal
delegation can be more easily enforced.
Prediction 19 More openness: (i) enhances research freedom; (ii) enhances
the creation of new lines and (iii) enhances basic research.
Murray et al. (2015) test the prediction that in a research setting characterized
by a high level of intellectual freedom, greater openness does not only increase
the flow of research, but also increases the diversity of new research discoveries.
More precisely, they consider the following natural experiment in openness:
NIH agreements in the late 1990s that reduced the costs of accessing information
on genetically engineered mice. 27 Using a sample of engineered mice
linked to specific scientific papers, some of which were affected by the NIH
agreements and some were not, Murray et al. (2015) evaluate how the level and
nature of follow-on research changes after the NIH-induced increase in openness.
They find that increased openness encourages entry by new researchers
and the exploration of more diverse research lines.
Particularly influential has been Heidi Williams’s contribution to the field.
In particular, Williams (2013) uses a fascinating dataset on the sequencing of
the human genome to analyse the impact of the IP restrictions imposed by the
private firm Celera until 2003, on subsequent innovation. The author finds that
these restrictions have indeed negatively affected subsequent scientific research
and product innovation.
Both Williams (2013) and Murray et al. (2015) have in common that they
both analyse the impact of nonpatent IP restrictions on subsequent innovation.
More recently, Sampat and Williams (2015) have looked at the potential impact
of gene patents on subsequent innovation on human genes. Somewhat surprisingly,
using USPTO data on human genes the authors find that gene patents
have no systematic effect on subsequent innovation.
1.8 Towards a New Growth Pact in Europe
The above discussion suggests some directions for a new growth package for
EU and in particular countries in the Euro area: (i) structural reforms starting
with the liberalization of product and labour markets: here we will argue that
an important role can be played by structural funds provided the targeting and
governance of these funds is suitably modified; (ii) industrial investments along
the lines suggested by our above discussion on vertical targeting; and (iii) more
flexible macroeconomic policies (budgetary and monetary) at EU level.
1.8.1 Structural Reforms and the Role of Structural Funds
There is a broad consensus among European leaders regarding the importance
of structural reforms, in particular product and labour market liberalization and