Knowledge economy: what role does intellectual property play in it Wealth generation through creation, production, distribution and consumption of knowledge and knowledge based products: •Key characteristics of knowledge economy: •Consumption of knowledge does not reduce supply •Law of diminishing returns does not apply, one can use knowledge infinite number of times without reducing its value because of use( it can become obsolete of course) •Can be stored, and distributed at low cost digitally, infinitely durable,
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Knowledge economy: what role does intellectual property play in it Wealth generation through creation, production, distribution and consumption of knowledge.
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Knowledge economy: what role does intellectual property play in it
Wealth generation through creation, production, distribution and consumption of knowledge and knowledge based products:
•Key characteristics of knowledge economy:
•Consumption of knowledge does not reduce supply
•Law of diminishing returns does not apply, one can use knowledge infinite number of times without reducing its value because of use( it can become obsolete of course)
•Can be stored, and distributed at low cost digitally, infinitely durable,
Characteristics of knowledge economy:
a) The economics is not of scarcity, but rather of abundance. Unlike most resources that deplete when used, information and knowledge can be shared, and actually grow through application.
b) The effect of location is diminished. virtual marketplaces and virtual organizations can be created that offer benefits of speed and agility, of round the clock operation and of global reach.
c) Laws, barriers and taxes are difficult to apply on solely a national basis. Knowledge and information ‘leak’ to where demand is highest and the barriers are lowest.
d) Knowledge enhanced products or services can command price premiums over comparable products with low embedded knowledge or knowledge intensity.
e) Pricing and value depends heavily on context. Thus the same information or knowledge can have vastly different value to different people at different times.
f) Knowledge when locked into systems or processes has higher inherent value than when it can ‘walk out of the door’ in people’s heads.
g) Human capital - competencies - are a key component of value in a knowledge-based company, yet few companies report competency levels in annual reports. In contrast, downsizing is often seen as a positive ‘cost cutting’ measure.
http://www.skyrme.com/insights/21gke.htm
• Three aspects of knowledge economy have implications for our understanding of conventional economic analysis ( Harris, 2001):
– Knowledge creation is an investment activity, like any other investment, it does not come free
– Once created, it contributes to growth of other factors of production, such as capital
– Knowledge accumulates. (In fact some times , learning makes earlier knowledge even more valuable)
• Investment in human capital, our thinking, analyzing and learning faculties matters
Types of Knowledge: tacit ( informal), explicit ( formal); emic and etic, episteme ( theory) or techne ( practice), contingent- episodic or concurrent, meta ( knowledge about knowledge), para or apara gyan, etc.
Arrow(1962) observed:
a) infinite expansability, non-rivalry
your consumption does not reduce supply of knowledge for me
b) Excludability: transaction costs
c) transparency: less than absolute, consumption can not be separated from production process many times, codification, verification, need for tacit knowledge to use the explicit ones,
What do IPRs do?
Positive:
•Reduce transaction costs—ex ante and ex poste for linking innovation, investment and enterprise
•Incentives for private creation of knowledge or production of knowledge with proprietary interests
•Generate market for innovations, and inventions to bring in potential buyers and sellers together through licensing ( or even piracy with loss of incentives)
•Signaling to society: trends in knowledge economy about where are future demands being estimated, ( uncertainty in domains of knowledge versus uncertainty in domain of applications)
•Creates possible knowledge networks
•Makes it possible for people to survive only by virtue of their knowledge, brings new kind of entrepreneurs in market place
Negative:
•Risk of creating Anti-commons with increasing fragmentation of knowledge
•Disincentives for production of new knowledge ( litigation intensive fields of knowledge may be left out by small firms, small R and D teams)
•Protection of Trivial incremental gains may make developing substantial gains some times difficult
•Broad protection makes subsidiary development of knowledge more difficult, ‘new enclosure movement’;
•Threat to open science culture ( some say due to bayh-dole act in usa)
•Good fences in knowledge economy may not always good friends (Foray, 2002)
Remedies( : compulsory licensing, public pool of private knowledge rights to spur innovations in society ( case of Daguerre’s invention of photography); differential pricing or licensing terms, non-exclusive licensing, cross licensing, Open source technologies ( linux), defensive patents, Collaborative research between public and private sector with social needs and concerns in mind
Do Patents Matter: IP in Indian R & D Institutions and Universities
BASIC FEATURES OF IPRsPATENT ------ NOVELTYCOPYRIGHT ------- ORIGINALITYTRADEMARK ------- DISTINCTIVENESSTRADE SECRET ------- UNLAWFUL ACCESSGEORAPHICAL ------- REPUTATION DUE TO
INDICATION ORIGINIndustrial designs ------- non functional property of
Analysis Of Patents Granted to Indians At United States Patent and Trademark Office
1976- July 2, 2004
PATENTS GRANETD TO DIFFERENT STATES OF INDIA FROM 1976- 16th March, 2004 AT UNITED STATES PATENT & TRADEMARK OFFICE
Sr. No.
State No. of patents filed
1. Maharashtra 545 2. Delhi 226 3. Karnataka 251 4. Andhra Pradesh 176 5. Uttar Pradesh 166 6. Tamil Nadu 65 7. West Bengal 61 8. Gujarat 51 9. Kerala 50 10. Haryana 45 11. Himachal Pradesh 22 12. Goa 17 13. Madhya Pradesh 12 14. Others 132 Total patents granted to Indians at USPTO : 1819 * Note : State of the first inventor is taken only into consideration
ANALYSIS OF PATENTS GRANTED TO VARIOUS INDIANS
UNIVERSITIES/INSTITUTES/COLLEGES AT UNITED STATES PATENT AND TRADEMARK
OFFICE FROM 1976-16th MARCH’04
Search key : “University, institute & college”
Search key: “University, institute & college” YEAR-WISE DISTRIBUTION OF PATENT GRANTED TO VARIOUS UNIVERSITIES/INSTITUTES &
COLLEGES AT UNITED STATES PATENT & TRADEMARK OFFICE FROM 1976 TILL 2nd JULY, 2004
YEAR NUMBER UP TO 2nd July, 2004 3
2003 11
2002 5 2001 9
2000 2
1999 6
1998 2
1995 1
1994 1
1993 1
1992 1
1991 1 1988 3
1983 1
1980 1
1979 2
TOTAL 50
CATEGORY WISE DISTRIBUTION OF PATENTS GRANTED TO VARIOUS INDIAN UNIVERSITIES/ INSTITUTES & COLLEGES AT UNITED STATES PATENT & TRADEMARK
OFFICE FROM 1976 TILL 2nd JULY, 2004 SI. CATEGORY PATENTS GRANTED
1 Drugs, pharmaceuticals, medicine and health care 29