More and stronger patents, instead of giving rise to productivity, is doing the opposite— it's stalling productivity and innovation. It is being used to protect incumbent major companies from new competitors. This leads to a sense of monopoly, which in the end, tends to lead to little innovation and even lesser progress in terms of gross domestic product.
In 1983, US issued about 60,000 patents. In 2010, that number climbed to 244,000— a four fold increase. However, R&D spending still stagnates around 2.5% of GDP, and total factor productivity is actually declining.
Innovators, instead of innovating, are worrying about legal issues and patent trolls. This instillation of fear prevents them from working towards building better technologies and innovations.
Intellectual monopoly, while having its benefits, also has a lot of negative effects, that is harming the economy.
Article: http://www.businessweek.com/articles/2013-02-24/how-patent-laws-are-stifling-american-growth
I agree completely. It's hard for startups to gain any ground when either trolls or companies are bullying them into submission and having to pay money. Check out this article: http://techcrunch.com/2013/02/27/law-would-force-patent-trolls-to-pay-for-failed-lawsuits-against-innovators/
ReplyDeleteYou clearly explained that this is a macroeconomic problem. However, I see this problem getting worse as a result of an increase in patents on apps and other phone related services. It is a shame that this past year more money in the U.S economy was spend on patent litigation then R&D. Something drastic needs to be done.
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