Archive for January, 2010
There has been a constant drumbeat of propaganda suggesting that the U.S. is issuing low quality patents. The academic papers supporting this propaganda compare the issue rates of patents that were filed in the U.S. and in the EPO (European Patent Office) or JPO (Japanese patent office). While a number of papers have pointed out the methodolical problems with these academic papers (see Patent Quality Myth ), the bigger question is whether they selected the correct metric in the first place. This post suggests that other metrics are more appropriate measures of patent quality and do not suffer from imposing other countries’ goals on the U.S. patent system. These metrics show that U.S. patent quality has been steadily increasing for over a fifty years and shows that perhaps the U.S. system is becoming an elitist system – much like Europe and Japan have practiced for years.
Technology start-ups drive innovation. According to the book, The Decline and Fall of the American Entrepreneur, a start-up needs almost a billion dollars in sales to justify going public because of the cost of complying with rules such as Sarbanes Oxley, depriving our technology sector vital financial capital.
Decline and Fall clearly shows:
*Sarbox fails to achieve its goals;
*Thriving IPOs are critical to providing capital for technology companies, even if most of those companies never go public;
*The SEC estimates the cost of Sarbox compliance at $91,000/yr per company, the actual cost is closer to $4.0M/yr!!!
*Is the medicine worse than the disease!!
Percentage of World IPOs:
1996 – 60% in U.S.
2005 – 20% in U.S.
*Decline and Fall shows how we can turn this around- Make the US the world leader again in Innovation. Jobs. Capital.
Your copy of The Decline and Fall of the American Entrepreneur: How Little Known Laws and Regulations are Killing Innovation, by Dale B. Halling, is at Amazon.com.
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