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Intellectual propertyIts role in growth, productivity and jobs in the (ICT-based) knowledge society
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Transcript of Intellectual propertyIts role in growth, productivity and jobs in the (ICT-based) knowledge society
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Intellectual propertyIts role in growth, productivity and jobs in the (ICT-
based) knowledge society
Claudio Feijóo1
1Universidad Politécnica de Madrid, [email protected]
Seminario Gestión de la Propiedad Industrial e Intelectual en el Sector TIC
Escuela de Organización Industrial
Madrid, 16 December 2009
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Index
1. Background. The policy framework
2. A bit of economics: from innovation to (sustainable)
growth and employment
3. The role of ICT in innovation and growth
4. Why intellectual property?
5. Conclusions
(Spain: outside looking in)
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1. Background. The policy framework
2009, a turning pointFailure of the Lisbon strategy: EU the most competitive, knowledge-based, economy by 2010. Launch of the 2020 strategy: sustainable growthGlobal economic crisis: changing the foundations, recovery based on fiscal policies and increasing competitiveness
ICT do have a key role in the digital economy (Digital Agendas)Skills for tomorrow’s needsEnergy efficiencyNew technologies for low-carbon marketsNew infrastructures to promote innovation Opportunities for SMEs, both in production and services sector Innovative start-ups generate high value jobs and contribute to regional development More efficient government services Participation (social and user empowerment)
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2. Economics: innovation and growth (1/3)
Schumpeter’s approach (“new growth theory”) Innovation: “change that creates a new dimension of performance”
(Drucker, 1994). Innovation directly impacts on productivity (level of
output per time) and growth
Types of innovations: introduction of new production processes
new products and services
new management methods
new organisation of firm activities
Innovations are created by the self-interest of firms, entrepreneurs
and researchers who expect to be rewarded with rents in the case of
their innovation being successfully implemented in the market
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2. Economics: innovation and growth (2/3)
The regional perspective. Lessons learned "The only meaningful concept of competitiveness (comparative efficiency)
at the national level is national productivity” (Porter, 1990)
It is the innovative effects of domestic companies what mostly accounts for productivity growth and not the international spillover
R&D: key role in the production of new knowledge and innovations
Countries with large R&D investments can grow faster
So
urce
: Pyyh
tiä
(20
07
)
The rate of return of R&D is extremely high. The social optimal level of R&D is higher that private markets can produce
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2. Economics: innovation and growth (3/3)
The ICT sector is by far the largest R&D investor, R&D employer and R&D performer in the EU (as it is in the USA and Japan).
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3. The role of ICT (1/7)
ICT: from inventions to innovations ICT technological inventions (micro and nanoelectronics, software
applications, broadband internet, mobile communications, ...) have given rise to innovations and changes
A period of growing and self-reinforcing number of solutions, with direct incidence on economic activity both in terms of overall economic growth but also in terms of economic efficiency (productivity)
So
urce
: Pe
rez
(20
03
)
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3. The role of ICT (2/7)
A summary of the impacts of ICT … ICT capital investment raises output and labour productivity Rapid technological change in ICT producing industries leading to Total Factor
Productivity (TFP) growth TFP growth in industries that make intensive use of ICT.
… and their consequences Need of an structural framework: regions with a high proportion of ICT-
intensive industries (banking, telecommunications, wholesale, etc) Adequate institutional framework (market behaviour, regulations, venture
capital, business culture, access to human capital, etc) Time lag due to the need to raise investments in human capital (training,
education, motivation, competences, etc), in knowledge capital (research and development) and to introduce organizational innovations.
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3. The role of ICT (3/7)
Summary of the conceptual model
So
urce
: IPT
S
(20
09
)
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3. The role of ICT (4/7)
Not each ICT the same. ICT usage -> Software Innovations in ICT taking place outside the ICT sector
So
urce
: IPT
S
(20
09
)
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3. The role of ICT (5/7)
EU: established companies, less investment
So
urce
: IPT
S
(20
09
)
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3. The role of ICT (6/7)
Spain, ICT R&D well below average
So
urce
: IPT
S
(20
09
)
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3. The role of ICT (7/7)
Spain, low-tech economy
So
urce
: IPT
S
(20
09
)
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4. Why intellectual property? (1/5)
Innovation additional advantages: competitive advantages (first mover, intangible assets, branding, de
facto standardisation), …
… maintained over time
How to protect innovation? Trade secret
Intellectual property – copyright
Intellectual property – patents, trademarks, industrial designs, …
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4. Why intellectual property? (2/5)
Intellectual property - copyright Promote and reward the creative process
Software – applications
Digital content
Intellectual property - patents Monopolistic rents in exchange of disclosure (up to 20 years)
Accountable intangible assets (financing, venture capital, …)
Strong protection
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4. Why intellectual property? (3/5)
Decline in ICT patents from 2004 due to innovation in software?
So
urce
: IPT
S
(20
09
)
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4. Why intellectual property? (4/5)
Spain historically very low position
So
urce
: IPT
S
(20
09
)
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4. Why intellectual property? (5/5)
Still valid in the new paradigms of open and user-driven
innovation
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5. To take home … (1/1)
Innovation, productivity and growth are inextricably linked in the
digital economy
ICT innovation permeates all sectors of activity (and its difficult to
measure)
Innovation is protected by trade secrecy and intellectual property
(not just patents)
In the case of Spain: Structural framework (low-tech industries, service economy)
Institutional framework: skills, innovation-business culture, human capital,
venture capital, administrative burden, …
Social perception
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Intellectual propertyIts role in growth, productivity and jobs in the (ICT-
based) knowledge society
Claudio Feijóo1
1Universidad Politécnica de Madrid, [email protected]
Seminario Gestión de la Propiedad Industrial e Intelectual en el Sector TIC
Escuela de Organización Industrial
Madrid, 16 December 2009