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Innovation and Incentives (Hardcover)

by S Scotchmer (Author)

5.0 out of 5 stars See all reviews (1 customer review)

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The Economics of the European Patent System: IP Policy for Innovation and Competition by Dominique Guellec
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Innovation and Its Discontents: How Our Broken Patent System is Endangering Innovation and Progress, and What to Do About It by Adam B. Jaffe
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Product details

Hardcover: 369 pages
Publisher: MIT Press (3 Dec 2004)
Language English
ISBN-10: 0262195151
ISBN-13: 978-0262195157
Product Dimensions: 22.9 x 17.8 x 2.3 cm

Average Customer Review: 5.0 out of 5 stars See all reviews (1 customer review)

Amazon.co.uk Sales Rank: 871,091 in Books (See Bestsellers in Books)

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Front Cover | Copyright | Table of Contents | Excerpt | Index

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6 of 7 people found the following review helpful:

5.0 out of 5 stars A tour-de-force on the latest thinking on innovation and IP, 15 April 2005

By A Customer

...

Bottom line: Professor Scotchmer knows how to ask and answer insightful questions, and she knows how to write well.

Most books on innovation focus on the problems with intellectual property and how to "fix" them. She puts the intellectual property in the broader historical context of innovation and delves into how IP stacks up in comparison to different incentives for new ideas, products and innovation. Her book is tour-de-force of the latest and best thinking about incentive mechanisms. It highly readable - although it requires a basic grasp of economics - and full of annecdotes, examples and statistics.

The key theme throughout the book is that different incentive methods each have strengths and shortcomings, and the real talent lies in knowing when to employ each. For example patents tie the reward to value, gathers diffused ideas and knowledge, places the risk squarely on individual companies, and concentrates costs among the users. On the other hand, they create deadweight loss, lead to duplicate costs, fail to prioritize the most effective innovator(or idea), and do not lead to the optimal level of investment in innovation. You get the idea...

It is a must have book!

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