Intellectual Property Rights

Intellectual Property Rights

Innovation, Governance and the Institutional Environment

Edited by Birgitte Andersen

Intellectual Property Rights is cutting edge in addressing current debates affecting businesses, industry sectors and society today, and in focusing not only on the enabling welfare effects of IPR systems, but also on some of the possible adverse effects of IPR systems.

Chapter 10: Intellectual Property Rights for Governance in and of Innovation Systems

Ove Granstrand

Subjects: economics and finance, economics of innovation, intellectual property, innovation and technology, economics of innovation, intellectual property, law - academic, intellectual property law


Ove Granstrand ABSTRACT This chapter attempts to look at the role of IPRs in different innovation systems – national, sectoral, corporate, university and military systems – in a governance perspective. The rapid advent of the pro-IP era from the 1980s on, embedded in the gradual emergence of a new type of economy dominated by intellectual capital, has generally transformed and strengthened various IP regimes in these innovation systems, with an increasing use of patent and licensing oriented regimes. The availability of enforceable and valuable IPRs together with more large-scale R&D and complex new technologies, calling for more inter-firm technology collaborations and various forms of technology trade (through licences, small firms, services and so on) have fostered quasi-integrated corporate innovation systems. Seen in a governance perspective the IPR approach creates governance tools but also governance problems, but so do other approaches to incentivizing and coordinating innovative activities as well. A re-evaluation of various approaches is needed, focusing on both incentivizing and coordinating functions, for sustaining efficient and effective innovation systems. Keywords: Technology, Governance, Intellectual Property, Innovation system, Licensing For a list of key concepts, see Appendix 10A and a list of abbreviations, see Appendix 10B. 311 312 Institutions of intellectual property rights governance 1 1.1 INTRODUCTION Background Sustained progress almost by definition requires a sustainable flow of innovations, that is, new and useful information and things. All currently known economic systems have difficulties in inducing and governing such a flow efficiently and alleged signs of their dysfunctioning are...

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