Innovation and Incentives

by Scotchmer, Suzanne

• ISBN13: 9780262195157
• ISBN10: 0262195151
• Format: Hardcover
• Copyright: 2004-12-01
• Publisher: Mit Pr

Summary

Interest in intellectual property and other institutions that promote innovation exploded during the 1990s. Innovation and Incentivesprovides a clear and wide-ranging introduction to the economics of innovation, suitable for teaching at both the advanced undergraduate and graduate levels. It will also be useful to legal and economics professionals. Written by an expert on intellectual property and industrial organization, the book achieves a balanced mix of institutional details, examples, and theory. Analytical, empirical, or institutional factors can be given different emphases at different levels of study. Innovation and Incentivespresents the historical, legal, and institutional contexts in which innovation takes place. After a historical overview of the institutions that support innovation, ranging from ancient history through today's government funding and hybrid institutions, the book discusses knowledge as a public good, the economic design of intellectual property, different models of cumulative innovation, the relation of competition to licensing and joint ventures, patent and copyright enforcement and litigation, private/public funding relationships, patent values and the return on R&D investment, intellectual property issues arising from direct and indirect network externalities, and globalization. The text presents technical and abstract analysis and at the same time sheds light on current controversies and policy-relevant topics, including the difficulty of enforcing copyright in the digital age and international protection of intellectual property.

Author Biography

Suzanne Scotchmer is Professor of Economics and Professor of Public Policy at the University of California, Berkeley

Table of Contents

Preface	ix
Institutions: A Brief Excursion through History	1	(30)
Stephen M. Maurer
The Ancients	3	(4)
In Between: Monasteries, Guilds, and Universities	7	(1)
Early Modern Europe: Patents, Prizes, and Patrons	8	(3)
Patents Come into Their Own	11	(3)
Modern Patrons: Foundations	14	(2)
Big Science and the Growth of Government Funding	16	(5)
Modern Hybrid Institutions	21	(6)
Conclusion	27	(4)
Investing in Knowledge	31	(34)
Intellectual Property: Tolls on the Information Highway	34	(5)
Ideas and Innovations	39	(2)
Prizes	41	(5)
Choosing among Ideas	46	(1)
Contests	47	(6)
Efficient Investments in Knowledge	53	(5)
Summary	58	(1)
Technical Notes	59	(6)
A Primer for Nonlawyers on Intellectual Property	65	(32)
Stephen M. Maurer
Patents	66	(10)
Copyright	76	(3)
Trade Secrets	79	(2)
Miscellaneous Rights	81	(1)
The Problem of Disclosure	82	(2)
Breadth and the Required Inventive Step	84	(4)
Intellectual Property and Antitrust	88	(4)
Technical Note: Doing Legal Research	92	(5)
On the Optimal Design of Intellectual Property	97	(30)
How Profitable Should Intellectual Property Rights Be?	98	(5)
Breadth as a Policy Lever	103	(4)
Structuring the Profit: Length and Breadth	107	(5)
Some Virtues and Defects of Patent Races	112	(2)
The Role of Exemptions	114	(3)
The Problem of One-Size-Fits-All	117	(2)
Technical Notes	119	(8)
Standing on the Shoulders of Giants: Protecting Cumulative Innovators	127	(34)
Three Types of Cumulativeness	132	(3)
Basic and Applied Research	135	(7)
Research Tools	142	(4)
Quality Ladders	146	(3)
Breadth and Inventive Step on a Quality Ladder	149	(3)
Prospecting	152	(4)
Summary	156	(5)
Licensing, Joint Ventures, and Competition Policy	161	(36)
Licensing for Productive Efficiency	162	(7)
Competition Policy in the Innovation Context	169	(3)
Ex Ante Mergers and R&D Joint Ventures	172	(3)
Ex Post Mergers and Patent Pools	175	(5)
Collective Rights Management Organizations and Compulsory Licensing	180	(5)
Licensing versus Sale of Protected Works	185	(2)
Technical Notes	187	(10)
Litigation and Enforcement	197	(30)
Evidence on Litigation	201	(5)
Remedies for Infringement and How They Matter	206	(6)
Enforcement of Copyrights by Technical Protection Measures	212	(7)
Limited Sharing of Copyrighted Works	219	(8)
Innovation Today: A Private-Public Partnership	227	(32)
Stephen M. Maurer
The Tangled Web of Funding Relationships	228	(7)
University Innovation	235	(5)
Government Innovation	240	(2)
Mixed Private-Public Incentives	242	(5)
The Government Grant Process	247	(5)
The Virtues of Open Science	252	(2)
Technical Note: Disclosure and Expected Time to Discovery	254	(5)
The Value of R&D and Patents	259	(30)
R&D and Productivity Growth	263	(7)
Patent Data and the Private Value of R&D Spending	270	(5)
The Skewed Distribution of Patent Values	275	(7)
Summary	282	(7)
Networks and Network Effects	289	(30)
Direct Network Benefits	292	(6)
Systems Competition and Proprietary Interfaces	298	(7)
Physical Networks: The Internet	305	(4)
Physical Networks: Cell Phones	309	(3)
Technical Notes	312	(7)
Innovation in the Global Economy	319	(32)
Trade Policy and Treaties	320	(5)
National Treatment and Efficient Protection	325	(4)
Country-Level Optimal Protection	329	(7)
National Autonomy and Protected Subject Matters	336	(3)
Intellectual Property and the Public Domain	339	(4)
National Autonomy and Trade Rules	343	(2)
Externalities and International Cooperation	345	(1)
Conclusion	346	(5)
Index	351