Author(s)
Source
Princeton University Press, 2008
Summary
This book argues that the patent system now impedes innovation.
Policy Relevance
Patents may be a poor choice to encourage innovation. Patent reform is important to avoid harm to innovation.
Main Points
- For many firms today, especially software firms, patent rights are too poorly defined to serve as predictable property rights.
- The evidence showing that patents encourage innovation is weak, except in the pharmaceutical sector.
- During the Industrial Revolution, evidence shows that patents supported some innovation, but also caused problems.
- Comparative studies of different nations show that stronger property rights encourage economic growth, but only weak evidence associates growth with patent rights.
- Countries that have newly adopted patent rights under TRIPs do not show increases in domestic innovation, though foreign inventors may increase patenting.
- Much innovation does not rely on patenting, and many innovations are not patented.
