Patents
The purpose of a patent
What is to reward innovators, protect property rights, or protect ideas?
Strategies for protecting property rights
What is patents and secrecy
The two network externalities
What are excess inertia and excess momentum?
Where owners of multiple patents to come together and sell their wares in a single package
What are patent pools?
A negative effect of patents (on society)
What is patents may lead to the formation of a monopoly or lead to an efficiency cost?
When potential competition from new products or production processes displaces the current monopolist's product or production process
What is creative destruction?
The definition of excess inertia
What is a Pareto superior equilibrium choice that both players forgo? (What is sticking to the old technology when it may be more efficient to adopt new technology?)
The name of the effect where leading firms have a lower incentive to innovate because of self-cannibalization that takes place when a firm introduces a new version of its product
What is the replacement effect?
The two requirements for a patent
What is novelty and nonobviousness?
The idea that large corporations are responsible for a disproportionate fraction of all innovation
What is Schumpeter Mark 2
The definition of excess momentum
What is the unnecessary and/or inefficient adoption of technology?
This is preferred by firms if the standards competition is very intense
What is firms prefer compatibility?
A long list of patent rights that those seeking to commercialize a new technology must deal with
What are patent thickets?
Schumpeter Mark 1 is defined by...
What is the idea that small entrepreneurs are the main engine of innovation
The point where a growing company becomes self-sustaining and doesn't need more investment to be economically viable
What is the critical mass
This idea implies the relevant network of consumers is increased which implies a greater benefit for consumers and is also referred to as compatibility between different technologies
What is standardization?
Corporations whose primary assets are patent portfolios and whose primary business model is to generate revenues by licensing and by suing alleged patent infringers
What are patent trolls?
The name of the effect when leading firms have a greater incentive to innovate when the threat of competition by a laggard is high
What is the joint profit effect
The two theories that explain the S-shaped diffusion of innovation
What are adopter heterogeneity and word-of-mouth effects
The two trade-offs policy makers face when deciding whether or not to favor standardization
What are information and timing trade-offs?