Environmental Policy Flexibility, Search and Innovation

It has long been argued that the implementation of flexible policy instruments, such as environmentally-related taxes and tradable permits, is likely to lead to greater technological innovation than more prescriptive forms of regulation such as technology-based standards. One of the principle reasons for such an assertion is that they give firms stronger incentives to search for the optimal technological means to meet a given environmental objective. While the theoretical case for the use of flexible policy instruments is well-developed, empirical evidence remains limited. Drawing upon a database of “environmental” patent applications from a cross-section of 73 countries over the period 2001–2003, evidence is provided for the positive effect of “flexibility” of environmental policy regime on innovation. This impact is additional to, and distinct from, the effect of policy stringency.environmental policy, innovation, flexibility

The Patent Spiral

Examination — the process of reviewing a patent application and deciding whether to grant the requested patent — improves patent quality in two ways. It acts as a substantive screen, filtering out meritless applications and improving meritorious ones. It also acts as a costly screen, discouraging applicants from seeking low-value patents. Yet despite these dual roles, the patent system has a substantial quality problem: it is both too easy to get a patent (because examiners grant invalid patents that should be filtered out by a substantive screen) and too cheap to do so (because examiners grant low-value nuisance patents that should be filtered out by a costly screen). This Article argues that these flaws in patent screening are both worse and better than has been recognized. The flaws are worse because they are not static, but dynamic, interacting to reinforce each other. This interaction leads to a vicious cycle of more and more patents that should never have been granted. When patents are too easily obtained, that undermines the costly screen, because even a plainly invalid patent has a nuisance value greater than its cost. And when patents are too cheaply obtained, that undermines the substantive screen, because there will be more patent applications, and the examination system cannot scale indefinitely without sacrificing accuracy. The result is a cycle of more and more applications, being screened less and less accurately, to give more and more low-quality patents. And although it is hard to test directly if the quality of patent examination is falling, there is evidence suggesting that this cycle is affecting the patent system. At the same time, these flaws are not as bad as they seem because this cycle may be surprisingly easy to solve. The cycle gives policymakers substantial flexibility in designing patent reforms, because the effect of a reform on one piece of the cycle will propagate to the rest of the cycle. Reformers can concentrate on the easiest places to make reforms (like the litigation system) instead of trying to do the impossible (like eliminating examination errors). Such reforms would not only have local effects, but could help make the entire patent system work better

Scientometric mapping as a strategic intelligence tool for the governance of emerging technologies

How can scientometric mapping function as a tool of ’strategic intelligence’ to aid the governance of emerging technologies? The present paper aims to address this question by focusing on a set of recently developed scientometric techniques, namely overlay mapping. We examine the potential these techniques have to inform, in a timely manner, analysts and decision-makers about relevant dynamics of technical emergence. We investigate the capability of overlay mapping in generating informed perspectives about emergence across three spaces: geographical, social, and cognitive. Our analysis relies on three empirical studies of emerging technologies in the biomedical domain: RNA interference (RNAi), Human Papilloma Virus (HPV) testing technologies for cervical cancer, and Thiopurine Methyltransferase (TPMT) genetic testing. The case-studies are analysed and mapped longitudinally by using publication and patent data. Results show the variety of ’intelligence’ inputs overlay mapping can produce for the governance of emerging technologies. Overlay mapping also confers to the investigation of emergence flexibility and granularity in terms of adaptability to different sources of data and selection of the levels of the analysis, respectively. These features make possible the integration and comparison of results from different contexts and cases, thus providing possibilities for a potentially more ’distributed’ strategic intelligence. The generated perspectives allow triangulation of findings, which is important given the complexity featuring in technical emergence and the limitations associated with the use of single scientometric approaches

Patenting insurance related business methods: predictability and risk

This paper raises and responds to questions concerning the patentability of business method patents. It explores the utility of patent applications in informing business method innovators of the risks associated with using the patent system. The insurance industry was chosen since its survival depends on an ability to adapt rapidly in the face of unrelenting, unpredictable change. Inventive changes in the insurance industry include new business models and e-business technologies to improve operating efficiency or to build customer focus. Using the European Patent Office's esp@cenet free patent database, a sample of patent applications for insurance industry innovations was retrieved. The paper then analyses the information contained in the patent application documents. A patent application requires public description of the invention in full enough detail to enable a person familiar with that business to produce it. If the application is successful, a granted patent gives the owner the valuable commercial advantage of a 20-year monopoly. If unsuccessful, the applicant will have disclosed the innovation to competitors

Innovations and Labour Market Institutions: An Empirical Analysis of the Italian Case in the middle 90’s.

In this paper a dynamic panel data specification is used to assess the relationship between labour market flexibility and innovation activities by distinguishing different technological regimes of activities and geographical areas of the Italian economy. In order to estimate the previous relationship, regional patents are included as a proxy of the innovation, while job turnover and wages represent labour market indicators. The results show that higher job turnover has a significant and negative impact on patent activities only in regional sectors of Northern Italy, while a positive and significant impact of blue and white collar wages has been generally found.Labour market flexibility, Innovation, Dynamic panel data, Endogeneous relationship.

Free and Open Source Software in Municipal Procurement:The Challenges and Benefits of Cooperation

The use of free and open source software by municipal governments is the exception rather than the rule. This is due to a variety of factors, including a failure of many municipal procurement policies to take into account the benefits of free software, free software vendors second-to-market status, and a lack of established free and open source software vendors in niche markets. With feasible policy shifts to improve city operations, including building upon open standards and engaging with free software communities, municipalities may be able to better leverage free and open source software to realize fully the advantages that stem from open software development

The quality factor in patent systems

In this paper, Bruegel senior Fellow Bruno van Pottelsberghe develops a methodology to compare the quality of examination services in different patent offices. Quality is defined as the extent to which patent offices comply with their patentability conditions in a transparent way. The methodology consists of a two-layer analytical framework encompassing 'legal standards' and their 'operational design', which includes several interdependent components that affect the stringency and transparency of the filtering process.