Farooqui, Goodridge and Haskel (2011)
|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.|
|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:|
|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:|
|Cross Country Study?:||No|
|Government or policy study?:||Yes|
|Time Period(s) of Collection:||
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
Coverage of Study
|Level of aggregation:||Company|
|Period of material under study:||1998-2006|