《技术创新管理》课程教学课件（英文）Innovation and intellectual property

Innovation andintellectualpropertyDr.MScBertSadowskiTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts

Innovation and intellectual property Dr. MSc Bert Sadowski

Structure(1)Whatareintellectualpropertyrightsandwhatisapatent(2) Role of patents: as mechanisms to motivate inventionand to appropriate returns.Tradeoffsbetween incentive toinnovationandallocativeinefficiency(3)PatentsandLDC(somepreliminaryissues)Technische UniversiteitTUEindhovenUniversity of TechnologyEconomicsofInnovation2013

Structure (1) What are intellectual property rights and what is a patent (2) Role of patents: as mechanisms to motivate invention and to appropriate returns. Tradeoffs between incentive to innovation and allocative inefficiency. (3) Patents and LDC (some preliminary issues) Economics of Innovation 2013

(1)IntellectualpropertyrightsanddefinitionofpatentTechnische UniversiteitTUEindhoveneUniversity of TechnologyEconomicsofInnovation2013

(1) Intellectual property rights and definition of patent Economics of Innovation 2013

2Intellectual property rights0Definitionof WorldTradeOrganization(WTO)onIntellectualpropertyrights (IPR):.“Rights given topersons over the creations of theirminds.Givethecreatoranexclusiverightovertheuseofhis/her creation fora certainperiod of time.".Forms:-(i)Copyrightandrightsrelatedto copyright;(ii)Industrialproperty(trademarks,patents,industrialdesigns,tradesecrets)(Greenhalgh&RogersCh.2)TechnischeUniversiteitTUEindhoven一UniversityofTechnologyEconomicsofInnovation2013

Intellectual property rights • Definition of World Trade Organization (WTO) on Intellectual property rights (IPR): • “Rights given to persons over the creations of their minds. • Give the creator an exclusive right over the use of his/her creation for a certain period of time.“ • Forms: − (i) Copyright and rights related to copyright; − (ii) Industrial property (trademarks, patents, industrial designs, trade secrets) (Greenhalgh & Rogers Ch. 2) Economics of Innovation 2013

Definition of a PatentAcontractbetweenaninventoranda state(patent-grantingauthority)Patents are grantedtoinventions whichare Novel, Inventive (non obvious),suitableforIndustrialApplication(useful)when considered againstthePriorArtStateInventor1. Protectionforabout20years1Publicationoftheinvention2.Exclusiverightstoproduce,use,http://worldwide.espacenet.com/http://patft.uspto.govlsell and importtheinventionhttp://w3.tue.nl/nl/diensten/bib/digibitorecoupR&Dinvestmentb/zoeksystemen/az/diiltostrengthenmarketpositionandtospreadnewtechnicalknowledgecompetitivenessto avoid R&Dduplicationstrategic patentingTechnische UniversiteitTUEindhovenUniversity of TechnologyEconomicsofInnovation2013

Definition of a Patent • A contract between an inventor and a state (patent￾granting authority) Inventor 1. Protection for about 20 years 2. Exclusive rights to produce, use, sell and import the invention • to recoup R&D investment • to strengthen market position and competitiveness • strategic patenting State 1. Publication of the invention http://worldwide.espacenet.com/ http://patft.uspto.gov/ http://w3.tue.nl/nl/diensten/bib/digibi b/zoeksystemen/a_z/dii/ • to spread new technical knowledge • to avoid R&D duplication Patents are granted to inventions which are Novel, Inventive (non obvious), suitable for Industrial Application (useful) when considered against the Prior Art Economics of Innovation 2013

IdentifierUS005153764A5,153,764[11]Patent Number:Date of Patent:Oct.6,1992[45][54] CONTROLOFOPTICAL-SYSTENSTitleandAbstractOTHERPUBLICATIONSFEKEDNNKSAlping et al.,Electronics Letters, vol.20, No. 19, Sepboth of Ipswich; David L Fordham.13:1984,DO.794-795Saxmundham; Alistair HutcheenMilcom'85,ConferenceRecordofthe1985IEEEMiliIpawich,Ian D,Henning.Ipswich,altary Communications Conference, Oct.20-23,1985,ofEnglandBoston,vol.2.IEEE,(NewYork,US.)[73]British TelecommunicationspubliAssigneeC,Topolcic et ali"The SATNET monitoring system",Datesimitednnany.GieeatBrtapp.468-476seep.469, right-hand column, lines 1-3;p473, left-hand column, lines 3-5314,761[21]App],No.ofJapan,vol.10,No.263PatenAbstracts22]PCTFiedMay 6, 1988(E-435)(2319), Sep. 9, 1986, & JP, A, 6189735 (NipponTelegt.& Teleph. Corp.) May 7, 1986.[86]CT No.PCT/GB88/00356"Time Division Direetion Control Transmission Sys-Feb. 2, 1989$3717terh of Optical Communication System"-Nippon Te-legr & Teleph Corp. vol. 10 No. 263 (E-435) [2319] Sep,102(e)DateEe2,19899, 1986WOR00093[87]PCT Pub.No.:PrimaryExamier-EdwardL,Coles,Sr.AsrintantExaminer--Kinfe-Michael Negash1301Foreign Applieatiom Priority DataAnorne,AgentorFirm-Nixon&VanderhyeMay6,1987 [GB]United Kiredom87105ABSTRACA method and control system for controlling a sig[]IntCH04J14/D8Inventorsfrom each outstation in a multiple access passive optic.i..network inchuding a central node and a pluralityOutstations involat the exchange, thmoatonns455/607,612,69,606[58]Field of Searcheterofasn reach outstateenalfroeand455/617;370/4,13,14,17,15;359/135,The value oparameter is monitored relativeto136137,152,167,177predetermined discriminatioa value to detect the sigretermined first andandreferen[56]References CitedApplicantacceptabie values for tU.S.PATENTDOCUMENTSparameter.Ifalueof thcparamcterfor adetece3,732,4965/1973455/69ignal falls outside the range, s control signal is tranHoye2/1982Pickent et al455/6064,317,232tied fromthe node to inistrocttherelevant outstatic4.512.0334/1985Schrock455/65edto4,553,268 11/1985..455/607455/694,580,264/1986for et alna originatingoutstation The method atronthatsystem are particularly adapted for controlling the terNTDOCUMENTSFOREICoralpositionandtheamplitudeofoutstatioxsas0138365aPatOm4/1985TDM passiveoptical network..Atransceiverfo016299412/1915arogeanPatOwithsuchasystemisalsodisclosed01680511/1986pesn PatOff3314869 10/1984FedRep,of Germany1/19842568431IPCClassERM9SSIES中aEnSATechnischeUniversiteitTUEindhoven-University of TechnologyEconomicsofInnovation2013

Identifier Dates Inventors and Applicant IPC Class Title and Abstract Economics of Innovation 2013

Patent application vs.patent granted>Applicationsasameasureof innovative effortVButdependingonsectorscience-basedsectors(electronics,chemicals)higherthantraditionalmanufacturingorservicesGrants (less than 60%) pass the scrutiny of noveltyAverage grant-applicationlag:three/fouryearsCan change due to institutional factors, e.gadvancesinpatentlawRighttruncationbiasesindataDeepeninginnovationsbyincumbentfirmsWideninginnovationbysmallerfirmsattractedbynewtechnologicalopportunitiesTechnische UniversiteitTUEindhovenUniversity of TechnologyEconomicsofInnovation2013

Patent application vs. patent granted  Applications as a measure of innovative effort  But depending on sector science-based sectors (electronics, chemicals) higher than traditional manufacturing or services  Grants (less than 60%) pass the scrutiny of novelty  Average grant-application lag: three/four years  Can change due to institutional factors, e.g. advances in patent law  Right truncation biases in data  Deepening innovations by incumbent firms  Widening innovation by smaller firms attracted by new technological opportunities Economics of Innovation 2013

Skewed valueofpatents (lots oftrivial ones!)Due to skewed value of patents, must weight patents bysomequalitymeasure.Use of patentcitations tocapturethe“important"patentsvs.trivialpatents.Assumption: More cited patents are moreimportant"Technische UniversiteitTUEindhovenUniversity of TechnologyEconomicsofInnovation2013

Skewed value of patents (lots of trivial ones!) Due to skewed value of patents, must weight patents by some quality measure. Use of patent citations to capture the “important” patents vs. trivial patents. Assumption: More cited patents are more “important” Economics of Innovation 2013

Origin of Fiber Industry:Invention ofLaseratBellLaboratories1953United StatesPatentOffice2,929,9221953first workingdeviceofPatented Mar. 22, 19602"Maser"(Microwavetures are suitable.nedther for thefonofmon2,929,922MASERSANDMASEAccordingly,an objectR COMMUNICATIONSt of the present iaventicaamplification by stimulatedtortranstating infrared,visibeArthur L.rlon,Madon,N.J.,and Charlesgned for opeinsition in tbe micrownorstoBellTel,NewYork,N.Y.acoryemission of radiation)ratlonofNewYoedbybeAppication July 30, 1958, Suril No, 52,37II Claims. (CI. 25p-7)DevelopedbyTownesandRenentlonanddesotFropaanvisbeandnlenonandSchwalowmedla inwbichdevicesoftmploysamedn1958appliedwithBelllabsforpatentasTeiaxatiorcerieiethasi1960PatentgrantedappliedtoamedinestaleasierCalawwilrespecttothergy levels which are in notegoiliturlunrtine1964TownesNobelPrizein(BwheAiPhcotbeatTesthen the spplied signal will stimulate the emission ofrseasthaPhysics/1981Schwalowquenerfromer object cf this1mal will be amplified.inwentionsapeaepeomisinefonsofmassersksownrationofjochromieNobelinPhysicsmacerinin the intrared, viFgy levef system is characterized byaltravioletrtions of the electrcaanetyJevels,whtheseparutionsofwithin desired onTbe above uad ofher oblects of fheeseut imvearkeTothismaterlaltheretrativecmbodimentTechnische UniversiteitTUEindhovenUniversity of TechnologyEconomicsofInnovation2013

Origin of Fiber Industry: Invention of Laser at Bell Laboratories 1953 • 1953 first working device of “Maser” (Microwave amplification by stimulated emission of radiation) • Developed by Townes and Schwalow • 1958 applied with Bell labs for patent • 1960 Patent granted • 1964 Townes Nobel Prize in Physics / 1981 Schwalow Nobel in Physics Economics of Innovation 2013

Growth of fibertechnology patents1967-200914001200-After1973takeoffin patenting,dueto1000institutional800changes in patentapplicationJo600#-In1980sharp400increase inpatenting200Geloven&Sadowski2012Technische UniversiteitTUEindhoveneUniversity of TechnologyEconomicsofInnovation2013

Growth of fiber technology patents 1967 - 2009 Economics of Innovation 2013 Geloven & Sadowski 2012 0 200 400 600 800 1000 1200 1400 # of patents - After 1973 take off in patenting, due to institutional changes in patent application - In 1980 sharp increase in patenting