What Kind Of Innovation Do Patents Encourage?

from the if-any-at-all dept

We've highlighted numerous studies that have shown how patents tend to hinder overall innovation, but there's no doubt that giving out monopolies may encourage different kinds of activities. Petra Moser's research comparing innovation in countries with patents to those without patents has shown that countries without patents tend to be just as innovative, but that the innovation takes different forms. Thus, patents tend to divert from the natural market of innovation to areas that are more easily "protectable." Whether or not that's actually "good" for progress is an open question. A while back, Stephen Kinsella posted a thought-provoking post from Prashant Singh Pawar examining how patents distort innovation incentives, based on a longer thesis he wrote up comparing "horizontal innovation" to "vertical innovation." Pawar's basic premise is that patents encourage "horizontal innovation" -- a totally different way of doing the same thing -- vs. "vertical innovation" -- building on what's been done before:

So, I finally came up with the terms 'Horizontal innovation', and 'Vertical Innovation'. Horizontal Innovation is when a parallel technology is discovered (usually to avoid patent infringement). For example if a company develops a flying car using (say) hydrolic expansion, and they get a patent of it, another company develops (or has to develop) a flying car technology by using Thermo-plazma radiator engine. Both these technologies achieve the same end, they enable a car to fly, so this is horizontal innovation. This is what patent proponents talk about being squashed when they say innovation will be reduced when patents are removed. There will not be Google G1 phone,Blackberry and iPhone if there were no IP rights.

Vertical innovation is when a technology is built top of another technology merely by adding a new element to it. For example if you develop a Car which can travel on water, and I take that car, and add a Sail to it to make it use wind then that's called a vertical innovation. With patents, only the patent holder can think of adding a sail on the boat-car and sell it, without patents, innovations will be done all over the world by every kind of boat and car enthusiast. There will be only one smart phone in this world, but it will be having numerous variants, such as a Google gPhone (synced with google services), a Microsoft mPhone (synced with microsoft services), and so on.

Patents promote horizontal innovation, but restrict vertical innovation. Without patents we will have more vertical innovation but less horizontal innovation.

It's an interesting theory, and it would be great to see some further research done to see if it's supported by the evidence. Of course, it also fits with what we've discussed in the past about the difference between invention (coming up with something new) and innovation (successfully bringing something to market such that people want it). Studies have shown over and over again that true innovation is an ongoing process, of continuing to build on what's come before, making it better and having it better serve the market. That is the sort of thing that we regularly see held back by patents -- it's the type of "vertical innovation" that Pawar is suggesting. Is society better off with a totally different type of flying car? Or are we better served by having lots more resources put towards making the flying car better serve our needs? I'd argue the latter, but would be interested to hear from people who argue the former.

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Putting Ideas And Inventions Into The Public Domain

from the an-idea-who's-time-has-come dept

A few months back, we wondered why it was so difficult to opt out of copyright. Soon after that, Creative Commons added its CC0 license, which gets you a long way towards putting your content in the public domain (there are a few issues related to it, but it's better than nothing). With patents, the issue isn't quite the same. With copyright, you're automatically given a copyright on creative works. Obviously, that's not the case with patents. However, people have wondered how they can put their invention in the public domain, such that (a) others can benefit from it and (b) it prevents others from patenting it at a later date. Tragically, the US Patent Office tends to look pretty narrowly at what counts as prior art and requires that the information be "published," (something that is also defined very narrowly) so simply declaring an invention to be in the public domain isn't always good enough to prevent others from making a claim on it.

I was thinking about the Slashdot post above for a bit, wondering if it was worth writing this post up, when someone else pointed out that some folks have now set up Public Domain Ideas, a wiki designed for just this purpose: to put your ideas into the public domain by publishing them in that wiki. There have been some efforts in the past to create a database of obviousness, but that's pretty difficult. The big problem with obvious ideas is that they're often so obvious, no one even thinks to put them down, until it's too late, and someone has patented an "invention" based on that idea. But the idea of a wiki for public domain ideas is much more interesting -- if people really do decide to make use of it -- and if the Patent Office recognizes it as a source of published inventions for prior art. In the meantime, if you've got some good ideas to share, why not check it out?

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What A Concept: Sharing New Inventions With The World Is Good For The Inventor

from the but...-but...-where-are-the-patents?!?!? dept

If you read the angry comments we get from self-proclaimed "inventors" whenever we write about patents around here, you might get the impression from them that if you can't protect your ideas, there's simply no reason to be an inventor. It looks like Johnny Chung Lee is proving that's simply not true. Lee has made plenty of cool things, some of which have garnered plenty of attention: from his Poor Man's Steadycam to his Wii-based interactive whiteboard. But none of his inventions have garnered as much attention as his YouTube video of his headtracking virtual reality system for the Wii, which became a YouTube sensation:

The New York Times now has an article noting all of the ways that Lee has benefited from being so public in revealing all of his inventions. Rather than struggling to get known, he's well known all over the place. Plenty of companies came calling trying to hire him, leading to a job he wanted at Microsoft. And, even when he's giving his ideas away for free, he's making some money on the side. The Poor Man's Steadycam, for example, is available to purchase, and Lee has made a quarter of a million dollars from it -- even though he provides full instructions for anyone who wants to build their own. Patent lawyers may cringe, but it would seem that he's doing quite well actively giving away his ideas, rather than trying to lock them up with patent protection.

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