As an empirical example of this externality, we analyze the innovation induced by the obesity epidemic. Obesity is … associated with an increase in the incidence of many diseases. The induced innovation hypothesis is that an increase in the … incidence of a disease will increase technological innovation specific to that disease. The empirical economics literature has …

the social benefits of their innovations if innovation is to be suitably rewarded and encouraged. However, this paper … deadweight loss associated with the patent system and discourage innovation by others. Economic efficiency is promoted if rewards … the patent system designed to spur innovation by better aligning the rewards and contributions of patent holders …