|Title:||Intellectual Property Institutions and the Panda’ s Thumb: Patents , Copyrights and Trade Secrets in Economic Theory and History|
|Author(s):||David, P. A.|
|Citation:||David, P. A. 1993. “Intellectual Property Institutions and the Panda’ s Thumb: Patents , Copyrights and Trade Secrets in Economic Theory and History”, in M. Wallerstein, M. Mogee and R. Schoen (eds .), Global Dimensions of Intellectual Property Rights in Science and Technology . Washington DC: National Academy Press; 19-61.|
|Key Related Studies:|
|About the Data|
|Data Description:||the author uses data from the WIPO and OTA. He also sites evidence from a number of other papers .|
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:|
|Time Period(s) of Collection:||
The author offeres his insights regarding the use of patent, copyright, and trade secrets to encourage innovation. He Brings sets out the historical background of the different IPR's and analyses the effects of the different IPR systems in the modern economy.
Main Results of the Study
The author discussed the historical evolution of property rights and continued onto discuss the history of intellectual property in terms of patents and copyrights.
Author notes that on a global scale developing countries would benefit from weak IPR's.
The author concluded with 4 main observations regarding the effect of government sanctioned monopolies.
- Patent rights can interfere with further discovery as its diverts resources into "racing" and inventing around the basic patent and discourages complementary inventions.
- Weak and Narrow patents encourage firms to cross-license thus disseminating findings rapidly, although might discourage efforts for radical, fundamental inventions.
- Weak patent protection regimes encourage exchanges of patent licences among firms that are symmetrical in technological capabilities, the opposite is more likely when transfers of technical know-how from more to less capable organizations.
- Intellectual property rights in the form of exclusive franchise guarantees can fix the problem of failure to exploit a patent.
Should be noted that problems with complements and licensing exists with copyright
Policy Implications as Stated By Author
Need ot be careful when creating IPR regimes in order to maximise social welfare