State of Innovation

Patents and Innovation Economics

Restore Patent Funding to Create Jobs

A NY times op-ed piece suggests that a relatively minor investment of $1 billion in the US Patent Office would create 1.5 million jobs for a cost of $660 per job.  Note that the $1 billion in funding would actual be repayment of user fees that Congress has stolen from the Patent Office over the last two decades.  The conclusion of the authors is:

So our guess is that restoring the patent office to full functionality would create, over the next three years, at least 675,000 and as many as 2.25 million jobs. Assuming a mid-range figure of 1.5 million, the price would be roughly $660 per job — and that would be 525 times more cost effective than the 2.5 million jobs created by the government’s $787 billion stimulus plan.

To encourage still more entrepreneurship, Congress should also offer small businesses a tax credit of up to $19,000 for every patent they receive, enabling them to recoup half of the average $38,000 in patent office and lawyers’ fees spent to obtain a patent. Cost, after all, is the No. 1 deterrent to patent-seeking, the patent survey found.

For the average 30,000 patents issued to small businesses each year, a $19,000 innovation tax credit would mean a loss of about $570 million in tax revenue in a year. But if it led to the issuance of even one additional patent per small business, it would create 90,000 to 300,000 jobs.

Please read the full article.

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August 6, 2010 - Posted by | Innovation, Patents | , , , , , ,

2 Comments »

  1. […] This post was mentioned on Twitter by PriorSmart, Dale Halling. Dale Halling said: Restore Patent Funding to Create Jobs: http://wp.me/pwxHH-gf […]

    Pingback by Tweets that mention Restore Patent Funding to Create Jobs « State of Innovation -- Topsy.com | August 6, 2010 | Reply

  2. […] Congress has stolen about $2B in user fees from the US Patent Office over the last two decades.  This has hurt innovation, job growth, and the economy.  See Restore Patent Funding to Create Jobs. […]

    Pingback by Obama: Make Regulation Efficient « State of Innovation | January 19, 2011 | Reply


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