According to the paper, Korea’s Patent Policy and Its Impact on Economic Development: A Model for Emerging Countries?, a strong patent system is a positive part of encouraging economic growth for emerging economies. The paper points out that:
Korea has long been a proponent of strong patent protection and of the need to maintain a robust, well-functioning patent office that supports the development of local technology. That view is consistent with the notion, to which Korea subscribes, that the patent system can help promote and sustain healthy economic development, particularly in
Two Singapore professor show patents result in significant economic growth. Their paper, Patent Rights and Economic Growth: Evidence from Cross-Country Panels of Manufacturing Industries concludes “the effect of strengthening patent rights on economic growth was substantial in economic terms.” P. 16
Our results have important implications for public policy. One is that patent laws and their enforcement matter for economic growth. However, our findings also
Perfect competition is when no one producer or consumer has the ability to affect the market price and all producers and consumers compete for a homogenous product, driving down the cost of the product. Under perfect competition, a producer’s profit is eliminated or at least reduced to a trivial return. Why this matters to patents is that the theory of perfect competition is often used to attack the patents. It is argued that patents allow producers a differentiating feature or product and therefore they have a greater margin than their competitors. Economists argue this means that the patent holder is getting monopoly profits according to the “perfect competition” theory and they call this profit a “deadweight” loss. This supposedly shows that resources are not being allocated efficiently.
Patrick Anderson at GametimeIP has an interesting post that explains investment in new technologies is affected by competition between the patent systems of countries. He quotes Judge Rader as pointing out that
By creating obstacles to patent protection, the real-world impact is to frustrate innovation and drive research funding to more hospitable locations. To be direct, if one nation makes patent protection difficult, it will drive research to another, more accommodating, nation.
Anderson further explains:
Rader then recounts the tale of the European patent system, which he says “became known for subjecting [biotech] inventions to delays in the patent office, challenges in litigation, increases
The study of economics would be the same thing as the study of evolution of humans if humans did not invent. Without invention there is no reason for trade. Why would we trade my berries for your berries if they are essentially the same berries? If we both eat the same dead animals, what would the purpose of trade be? Without trade, production is limited to the immediate needs of the person. Perhaps you might store up some nuts, but everything else will spoil. Note that shelter is an invention, unless it only involves taking over a cave or a hole in a tree. The unique feature of man is that he is a rational animal and in the economic realm this means that he invents. No other animal invents. Only humans change their environment to meet their needs.
A great video from the Economic Freedom blog shows how the U.S. has wiped out two decade of progress toward economic freedom in a nine years. According to the video government spending and regulation take up 65% of the GDP. Regulation by itself takes up 19% of GDP. This means that the average goods and services in the U.S. have to be 23.4% higher in price just to pay for regulations. Imagine how much “demand” would be opened up if the average price of goods and services were lowered by this amount. To understand why the price of the average goods and services is 23.4% higher because of regulations see Austerity:
Forbes magazine released its ranking of the best countries in which to do business. The U.S. fell a spot to tenth on the list. Canada jumped three spots to first place. This is another list confirming that the U.S. is slipping economically because of the policies that it is pursuing. Another recent list ranked the U.S. tenth in economic freedom. The answers to our economic problems are not too complex to understand, it is easy to define which policies further economic freedom and individual rights and which do not. The Obama and Bush administrations both moved us away from freedom and toward socialism (more accurately Fascism). Both administrations introduced
According to the Frasier Institute economic freedom around the world is the lowest it has been in three decades. The U.S. has fallen from number three in 2000 to number ten, in 2010 the US was sixth and has fallen to tenth this year. Is it any wonder that we are in the worst economic downturn since the Great Depression? The three decade low matches the malaise of the Carter years. Lack of economic freedom is traditionally associated with death, bone crushing poverty, violation of civil rights, and every anti-human condition. The evidence is overwhelming: if you are pro-human then you have to be pro-freedom, meaning pro individual rights. If you are anti-human then you will advocate more government spending, more government control, and more government
Steve Jobs was an inventor on over 300 patents. He is the quintessential American inventor entrepreneur. He and Steve Wozniak started Apple in January of 1977. The company went public in December of 1980 and was the largest IPO (Initial Public Offering) since Ford in 1956. Apple goes on to launch the MacIntosh in 1984 with its now famous television ad that played off the book 1984, where IBM played the role of Big Brother. This launches the graphical user interface (GUI) as the standard for computers.
The The Decline and Fall of the American Entrepreneur: How Little Known Laws and Regulations are Killing Innovation , is now available in Kindle format for only $7.99.
*New US laws since 2000 are killing US Innovation
*Explains why the venture capital model is dying.
*Innovation is key to creating high quality jobs
*Innovation is key to increasing real per capita incomes of Americans
- A Christmas Tale: ‘I Am My Brother’s Keeper’ – and How it Applied to Patents
- Long Term Economic Predictions 2011
- The Science of Economic Growth: Part 2
- The Science of Economic Growth: Part 1
- The History of Patent Damages
- Repeal of Sarbanes Oxley and Dodd Frank Proposed
- Justice Breyer: Patent Ignorance
- New Ex-Parte Appeals Rules from the USPTO
- Mark Twain’s Birthday: Thoughts on Patents
- US Brain Drain