Chapter

The Diversity of Innovation

in The Patent Crisis and How the Courts Can Solve It

Published by University of Chicago Press

Published in print May 2009 | ISBN: 9780226080611
Published online March 2013 | e-ISBN: 9780226080635 | DOI: http://dx.doi.org/10.7208/chicago/9780226080635.003.0004
The Diversity of Innovation

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This chapter presents a discussion on the diversity of innovation in different industries. The industry-specific components of innovation fall into several categories. The cost of R&D varies widely from industry to industry and from innovation to innovation. Economic evidence has shown industry-specific variation in the corporate nature of innovation. The systematic variation in R&D expenditures across industries naturally affects the need for patent protection. As the cost of R&D goes up, innovation without patent protection requires higher and higher imitation costs. Innovation differs by industry in a variety of ways. Each distinct technology displays an idiosyncratic profile of technical and economic determinants for research, development, and return on investment. There is every reason to believe that achieving optimal innovation in different industries will require greater or lesser measures of legal incentive, and in some cases perhaps even no legal incentive at all.

Keywords: innovation; R&D; patent protection; industry; imitation costs; investment; legal incentive

Chapter.  4822 words. 

Subjects: Intellectual Property Law

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