Untitled Deck

Question 1

Intellectual Property Rights (IPR) -

Answer 1

Temporary monopoly rights for production/user rights enforced by the state regarding using product/ideas.
- Exclusive rights allow owners to reap benefits & create financial incentives for creation of IP

Question 2

Patent

Answer 2

• Grants rights to exclude others generally for 17-20 years from using an innovation

Question 3

License - Grants rights to produce a product for a certain period of time: keeps ownership of innovation

Answer 3

allows others to use it.

Question 4

• terms under licensing agreement

Answer 4

set for a period of time

Question 5

Trademark - Protects businesses’ investment in building a publicly familiar commercial identity.

Question 6

• a word

Answer 6

name

Question 7

• Nike tick

Answer 7

Mcdonald’s M

Question 8

Copyright - Protects words in which an idea is expressed

Answer 8

not the concept (a research article) usually 50 years after writers death

Question 9

• Literature

Answer 9

music

Question 10

• Exceptions: non-commercial research

Answer 10

private study

Question 11

Disruptive innovation - A new product/service/tech that fundamentally changes an industry by displacing established competitors.

Question 12

• Changes structure

Answer 12

by creating new competition.

Question 13

E.g.: Fosbury Flop in high jump displaced straddle jump technique.

Question 14

Input spillover - a firm’s R&D efforts (inputs) directly helping rivals to innovate

Question 15

Output spillovers - rivals are able to make profitable use of a firm’s innovation without paying.

Question 16

• receiving firm always benefits

Answer 16

but R&D spillovers can be socially beneficial

Question 17

Basic research - directed towards increases in knowledge/understanding of the fundamental aspects of phenomena and if observable facts

Answer 17

without commercial/specific objectives.

Question 18

• uni researchers publishing knowledge to the public - spillovers likely to be beneficial.

Question 19

Applied research - directed towards gaining knowledge/understanding necessary for determining the means by which a specific need/commercial objective can be met.

Question 20

• private firms looking to gain a profit

Answer 20

their absorptive capacity is more important.

Question 21

Development - systematic use of knowledge gained from research directed towards the production of useful materials

Answer 21

devices

Question 22

Research Joint Ventures (RJV) - agreement between 2 or more partners to perform R&D

Question 23

• provides mechanism to bridge the divide between optimal public R&D policy - free dissemination of knowledge & private incentives for R&D investment (appropriation of returns to investments).

Question 24

Non-drastic innovation - a process innovation which results in cost reduction: but not enough to profitably charge under monopoly price.

Question 25

- consumers don't benefit from this until end of patent protection

Question 26

Drastic innovation - a process innovation which results in cost reduction: reduction is so large that the innovator can profitably undercut the monopoly price of the incumbent.

Question 27

- can make the innovator a monopolist & consumers benefit from innovation

Question 28

Utility patents - can be granted to anyone that invents a new useful machine

Answer 28

article of manufacture/composition of any new improvement: processes & machines

Question 29

Design patents - patents that are granted when someone has invented a new and original design for a manufactured product.

Question 30

- cocacola bottle

Answer 30

red bottoms on loubs

Question 31

Trade secret - customer list

Answer 31

business plan

Question 32

- not property in real terms

Answer 32

possessor doesn't have exclusive rights to enjoy/use - if secret gets leaked/reverse engineered nothing can be done about it in the law.

Question 33

Information goods - goods that can be replicated & distributed: movies

Answer 33

music

Question 34

Patent length Utility: 20 years (UK & US)

Question 35

Design: (25 years UK) & (15 years US)

Question 36

Patent breadth - patent law implicitly creates the concept of breadth by interpreting whether the potentially infringing product does the same job/work in the same way to accomplish something.

Question 37

- how much the patent covers: otherwise competitors could just make trivial improvements.

Question 38

- differs between countries & products

Question 39

Ratio test - It's a rule of thumb for designing intellectual property (IP) rights (like patents or copyrights)

Question 40

- If the ratio of deadweight loss to profit increases over time (which it often does)

Answer 40

it's better to reward innovators with broader rights for a shorter time than with long-lasting narrow ones.

Question 41

Replacement effect - A monopolist has less incentive to innovate than a competitive firm would

Answer 41

because any innovation they create would just replace themselves — they're not gaining a new market

Question 42

Efficiency effect - a monopolist has higher incentive to innovate than an entrant

Answer 42

because:

Question 43

- They're more efficient and already have infrastructure

Answer 43

scale

Question 44

- have more to lose if a rival overtakes them.

Question 46

So they'll invest to maintain dominance — "defensive innovation".

Question 47

Prizes - can be a good incentive to innovate

Answer 47

when a clear goal exists but the path to success is unknown.

Question 48

- focuses on addressing critical global challenges

Answer 48

including protecting the planet