Farooqui, Goodridge and Haskel (2011)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Farooqui, Goodridge and Haskel (2011)
Title: The Role of Intellectual Property Rights in the UK Market Sector
Author(s): Farooqui, S., Goodridge, P., Haskel, J.
Year: 2011
Citation: Farooqui, S., Goodridge, P., & Haskel, J. (2011). The Role of Intellectual Property Rights in the UK Market Sector. Intellectual Property, 2.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Hargreaves (2011)
About the Data
Data Description: The data comprises measures of investment in copyright protected ‘artistic originals’ – wholly new art, film, literature, TV/Radio productions or music– using new data drawn from various sources including industry estimates, collecting societies and US depreciation indices.

The data and methodologies used to estimate investment in artistic originals are then combined with official UK software investment data (Chamberlin et al, 2007), to provide an estimate for UK investment in copyright-protected assets.

As well as other categories of knowledge assets, the dataset includes estimates of investment in research and development (‘R&D’), ‘Advertising’ and ‘Architectural and Engineering Design’, this provides the bases of estimates for investment in ‘Patents’, ‘Trademarks’ and ‘Design Rights’.

As not all investment is protected by IPRs, the study uses Community Innovation Survey data to estimate the proportion that is protected. Wiith these investment data, the study calculates how much knowledge capital in the UK is IPR-protected which we combine with official data from the UK National Accounts to estimate the contribution of IPR-protected capital to labour productivity growth.

Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: Yes
Time Period(s) of Collection:
  • 1990-2008
Funder(s):
  • IPO

Abstract

This report builds on previous work which estimated UK market sector investment in knowledge capital and its contribution to growth: the most recent example being the NESTA Innovation Index (Haskel et al, 2011). Knowledge capital investment adds to the stock of intellectual property (IP) in the economy. Not all that investment is protected by IP rights (IPRs) such as copyright and patents: software is protected, but business processes are not. Thus this paper attempts to answer the following questions: (a) what proportion of knowledge investment is protected by IPRs; and (b) how much economic growth is therefore accounted for by such protected investment?

Main Results of the Study

The main findings of this study are:

  • On average, between 2000 and 2008, approximately 48% of UK market sector investment in knowledge was protected by IPRs.
  • Approximately 75% of IPR investment is in assets protected by copyright and unregistered design rights.
  • In 2008, approximately 62% of the stock of knowledge assets in the UK market sector were protected by IPRs.
  • On average, between 1990 and 2008, 10.6% of growth in labour productivity was due to growth in the use of IPR-protected assets, similar to the 11.1% contribution of ICT equipment. The contribution of knowledge capital not protected by IPRs is around 10.3%, slightly less than that of protected IPRs.
  • We view our results as a lower bound of the total contribution of IPR-protected assets. Patents protect a specific innovation but reveal information to others for free. The same is true for other forms of IPR-protected knowledge. Such freely available information contributes to growth via total factor productivity (TFP) - effects on total output not caused by inputs -, which we estimate contributes around 45% of labour productivity growth. Thus the true contribution of IPRs would include a share of this.

Policy Implications as Stated By Author

None stated


Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Green-tick.png
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size: 15181
Level of aggregation: Company
Period of material under study: 1998-2006