IPRs, Technological Development, and Economic Development

In the year 2000 some $142 billion in royalties were paid internationally by users of a specific piece of knowledge that were protected under Intellectual Property Right law (IPR) to those parties that owned these rights. Under current circumstances where knowledge & innovation play an increasingly significant role in the economy (Foray & Lundvall 1996, Cowan, David and Foray 2000, Cooke 2002, Dolfsma & Soete 2006, Dolfsma 2005). IPRs have become increasingly prominent in debates and are almost unanimously deemed to favor economic development by policymakers, and certainly by policymakers in developed countries. While it has been acknowledged that some parties may benefit more from a system of IPRs than others, in relative terms a Pareto improvement is the expected outcome (Langford 1997). This has not always been the case. In addition, the academic (economic) community is almost unanimous about the system of IPR overshooting its goals. This has been the motivation to include IPRs in the WTO negotiations. The TRIPS agreement (Trade-Related Aspects of Intellectual Property Rights) has resulted in 1994 from these negotiations. Especially during the 1990s the number of patents granted has grown tremendously despite the fact that many a scholar still supports Machlup’s (1958, p.28) conclusion that:“it would be irresponsible, on the basis of our present knowledge of its consequences, to recommend instituting one. But since we have had a patent system for a long time, it would be irresponsible, on the basis of our present knowledge, to recommend abolishing it.â€From other corners, where specific effects of IPRs are considered, a different and less circumspect sound may be heard. Examples of this are attempts to make available HIV/AIDS drugs at a reduced price compared to what the pharmaceutical companies that have the patents on these drugs demand. I will focus on patents.Empirical and theoretical findings bearing on the question of IPRs’ effect on technological development, and thus prospect for economic development, are reviewed. Static and dynamic effects are distinguished. Areas where static effects may be expected include transfer of knowledge, balance of payment effects, effects for large as opposed to small firms, and effect on the ‘extent of the market’. Areas for dynamic effects include technological development and technological preemption. The list may not be exhaustive, and effects are interlocking: they may be mutually reinforcing or they may conflict. I will mostly focus on ‘dynamic’ effects.Economic Dynamics;IPRs;Intellectual Property Rights;Technological Development

Polluting production – environmentally sound alternatives; A general model of production externalities

With the determination of principal parameters of producing and pollution abatement technologies, this paper quantifies abatement and external costs at the social optimum and analyses the dynamic relationship between technological development and the above-mentioned costs. With the partial analysis of parameters, the paper presents the impacts on the level of pollution and external costs of extensive and intensive environmental protection, market demand change and product fees, and not environmental protection oriented technological development. Parametrical cost calculation makes the drawing up of two useful rules of thumb possible in connection with the rate of government in-terventions. Also, the paradox of technological development aiming at intensive environmental protection will become apparent

Lynn White revisited: religious and cultural backgrounds for technological development

Since the beginning of the awareness of the environmental crisis, studies have tried to trace back the historical and ideological roots of industrial evolution. Many of these studies indicated elements of the Judeo-Christian tradition as at least co-responsible. Some 40 years later, this chapter overviews some strands of the discussions these studies have provoked, especially concerning the alleged anthro-pocentrism of Judaism and Christianity, and their disenchanting attitude towards nature. These traditional ideas are confronted with insights from Marcel Gauchet’s philosophy of religion, with inputs from other religions, and with empirical data from recent surveys

Technological development in Therapeutic applications of alternating electric fields: Review

A number of bacteria, virus and other unhealthy cells need to be killed for getting rid of them. For more than a century antibiotics have been effectively used for killing bacterial pathogens and chemical drugs against the cancer cells. However, there are bacteria and cancer cells that are drug resistant. This may have to be overcome by other stronger drugs, higher dosage. These can have detrimental side effects. Other non drug methods to aid the effect of these drugs have always been in research. Electrochemotherapy, a method of using electric fields along with the drug to be used topically has been one of the successful approaches. One of the most recent methods of Tumor Treating Frequencies (TTF) for a brain cancer has been FDA approved. This article details the use of TTF. The article also details some other latest research where alternating fields are used as antibacterial agents

Work, education and scientific and technological development knowledge and training

A new facet of the productive structures is the accrued importance of the component "knowledge and training". Indeed, knowledge and training become parts of the productive process from the beginning to its marketing, the traditional vocational training being a limited part of the activities regarding knowledge and transfer inside the working place. At the same time, educational systems come more and more to resemble productive systems; first of all, because their employees are, in many countries, the most relevant part of the working force, secondly, because their "products" are quite often evaluated by the market; thirdly, because part of these educational systems are integrated in the productive system itself. As productive systems, educational systems are facing the same problems as any other productive system: skilling and deskilling, introduction of technologies, explosions hierarchization, etc.peer-reviewe

Technological development and concentration of stock exchanges in Europe

This paper provides an explanation of technical inefficiencies of financial exchanges in Europe as well as an empirical analysis of their existence and extent. A single-stage stochastic cost frontier approach is employed, which generates exchange inefficiency scores based on a unique unbalanced panel data set for all major European financial exchanges over the period 1985–1999. Overall cost inefficiency scores reveal that European exchanges operate at 20–25% above the efficiency benchmark. The results also affirm that size of exchange; market concentration and quality; structural reorganisations of exchange governance; diversification in trading service activities; and adoption of automated trading systems significantly influence the efficient provision of trading services in Europe. Over the sample period, European exchanges notably improved their ability to efficiently manage their production and input resources.Europe; financial exchanges; panel data; technical efficiency

The scientific influence of nations on global scientific and technological development

Determining how scientific achievements influence the subsequent process of knowledge creation is a fundamental step in order to build a unified ecosystem for studying the dynamics of innovation and competitiveness. Relying separately on data about scientific production on one side, through bibliometric indicators, and about technological advancements on the other side, through patents statistics, gives only a limited insight on the key interplay between science and technology which, as a matter of fact, move forward together within the innovation space. In this paper, using citation data of both research papers and patents, we quantify the direct influence of the scientific outputs of nations on further advancements in science and on the introduction of new technologies. Our analysis highlights the presence of geo-cultural clusters of nations with similar innovation system features, and unveils the heterogeneous coupled dynamics of scientific and technological advancements. This study represents a step forward in the buildup of an inclusive framework for knowledge creation and innovation

Technological development and employment

This theoretical paper considers the investment strategy of an economy trying to shift from old to new technology. The two technologies are described by fixed capital/output and labor/output coefficients, The new technology has a lower labor/output requirement. Structural unemployment due to capital shortage is a possibility. Aggregate investment is limited by the economy's propensity to save and the strategic problem is the allocation of investment between the two sectors. It is shown that if the new technology requires more capital per unit of net output, investment should be allocated to the old technology until full employment is achieved and then split between the two sectors in proportions that preserve full employment. There is no conflict between maximizing employment and maximizing growth of output and consumption. If, however, new technology is less capital-using than old, it may happen that full employment and full development are incompatible objectives. The impasse can be broken if additional saving is temporarily available and in the use of such saving employment and output growth are competing objectives

Tracing technological development trajectories: A genetic knowledge persistence-based main path approach

The aim of this paper is to propose a new method to identify main paths in a technological domain using patent citations. Previous approaches for using main path analysis have greatly improved our understanding of actual technological trajectories but nonetheless have some limitations. They have high potential to miss some dominant patents from the identified main paths; nonetheless, the high network complexity of their main paths makes qualitative tracing of trajectories problematic. The proposed method searches backward and forward paths from the high-persistence patents which are identified based on a standard genetic knowledge persistence algorithm. We tested the new method by applying it to the desalination and the solar photovoltaic domains and compared the results to output from the same domains using a prior method. The empirical results show that the proposed method overcomes the aforementioned drawbacks defining main paths that are almost 10x less complex while containing more of the relevant important knowledge than the main path networks defined by the existing method.Comment: 20 pages, 7 figure