Posts Tagged: "innovation"

I recently received an inquiry from an IPWatchDog reader, posing several questions about the links between intellectual property protections, innovation and job creation. (Thank you, Marcus!) The interrelated nature of IP, innovation and jobs is essential to economic prosperity and important enough to explore again. Marcus:   I’m curious about two positions that are taken in your writing. First, you state…

Corporate investment into research and development at John Deere has also fallen slightly but the company did manage to maintain a $341.1 million R&D investment during the most recent fiscal quarter. Since the beginning of 2015, Deere & Company has received a total of 92 patents from the U.S. Patent and Trademark Office. According to Innography’s text cluster (see left), much of Deere’s innovation is focused on work vehicles, tractors and harvesters. We were intrigued to note, however, that a sizable chunk of Deere’s recent inventions relate to a display screen with icon, indicating a healthy amount of software development at the company.

The first ever CES Asia took place between May 25th and 27th in Shanghai, China. The inaugural industry event showcased the many different technologies that will be entering China’s consumer market in the coming months and years. The three-day exposition was the first Chinese technology trade show coordinated with the Consumer Electronics Association since 2012. More than 200 companies came from 15 countries to display emerging consumer technologies from knockoff versions of Google Glass to home cinema technologies. The forecasts for the Chinese consumer market for emerging technologies would give any technology developer reason to believe that nothing but fair weather awaits them in that country.

Images captured by the Hubble Space Telescope also helped the global science community learn more about the formation of planets and galaxies. In 1995, Hubble captured images in the Orion Nebula of intense radiation jets reaching trillions of miles long as well as the gaseous protoplanetary disks which serve as raw material for the stars and planets of a forming solar system. Other planetary discoveries pioneered by Hubble researchers include the first visible-light image ever captured of a planet outside of our solar system, Fomalhaut b, located 25 light years from earth in the Piscis Australis constellation.

It is important to emphasize that we are not claiming that the patent system as currently defined cannot be improved. Rather, we offer evidence on two interrelated predictions of the SEP hold-up hypothesis. First, if SEPs are holding up innovation, then products that are highly reliant upon SEPs should experience more stagnant quality-adjusted prices than similar non-SEP-reliant products. Second, if SEPs are holding-up innovation, then changes in the legal system (eBay) that weaken the excessive negotiating strength of SEP holders should accelerate reductions in quality-adjusted prices in SEP-reliant industries relative to non-SEP-reliant industries. We find no evidence for either prediction.

Patents provide a competitive advantage, and those sophisticated in business know enough to look for and exploit whatever competitive advantage exists. Patents are the 800 pound gorilla of competitive advantage, but realize if you are going to want and need significant sums of money from investors rarely does a single invention or patent command attention. No one wants to invest significant funds into a company that has a one-and-done approach to innovation. That is why the most valuable inventions will have applicability in a variety of fields, and will have a variety of different implementations, alternatives and variations.

While Chinese President Xi is cracking down on political dissidents and solidifying his power over the army, the country has begun a huge push for innovation. While it’s easy for us to look askance at that proposition, we may be about to launch an equally quixotic experiment of our own: seeing if American innovation can survive the undermining of our patent system.

One area where NASA has been placing a fair amount of its research focus is in developing design features that allow for reductions in an aircraft’s weight and the amount of drag it creates. The aeronautical research agency has entered into a partnership with the Boeing Company (NYSE:BA) of Seattle, WA, to test a couple of fuel efficiency technologies on a special Boeing 757 model known as the ecoDemonstrator. One NASA project utilizing the ecoDemonstrator is the Environmentally Responsible Aviation (ERA) project, which explores the benefits and risks of new vehicle design concepts. On the Boeing ecoDemonstrator, NASA installed a series of 31 sweeping jet actuators which are capable of on-demand manipulation of airflow over the vertical tail of an aircraft. The use of the sweeping jets would provide the stability and directional control usually supplied by the aircraft’s vertical tail, allowing manufacturers to reduce the tail’s size and the overall drag of the aircraft. A separate ERA project involving the ecoDemonstrator will test the insect repellant properties of various repellents for an Insect Accretion and Mitigation study. Even a small bug can disrupt the laminar flow of air over the leading edge of a wing, increasing drag and reducing fuel efficiency by as much as six percent. The Insect Accretion and Mitigation study will take place between April 27th and May 15th near the area of Shreveport, LA.

Netflix raised a lot of ire in recent weeks when it negotiated a sponsored data agreement with two Australian ISPs. Those sponsored data agreements, which ensure that a certain amount of bandwidth is devoted to Netflix customers, was accused of running afoul of the very precepts of net neutrality for which the company lobbied here at home. From an innovation standpoint, if Netflix isn’t forced to pay for the bandwidth that it takes up, Netflix has no incentive to innovate a solution to the bandwidth problem that it has created for itself.

Distracted driving is a huge problem on American roads, contributing to 16 percent of all motor vehicle crashes that happened in the U.S. during 2013. With so much focus on the role of personal electronic devices like smartphones in distracted driving incidents, it’s no wonder that we would find a number of patents directed at manipulated device function within cars. U.S. Patent No. 8952800, entitled Prevention of Texting While Operating a Motor Vehicle, claims a system with multiple sensors for measuring vehicle conditions and a monitoring module that determines the state of a phone located within the vehicle and can determine that improper use of the phone was made. This patent was issued to IBM of Armonk, NY, in February.

Flash forward to the present and it’s easy to see that NASA is experiencing a lot of activity in some very interesting areas. Mars has been the subject of fascination for scientists over the course of centuries, inspiring many people other than David Bowie to question whether there is life on it. Just last week NASA released a report indicating that there are atmospheric conditions that would allow liquid brine to form on the surface of the Gale Crater; the data came from one years’ worth of temperature and humidity measurements collected by NASA’s Curiosity rover. Detecting the presence of water in any formulation on the surface of Mars is a giant leap for mankind, and it’s not the only development that NASA is currently pursuing.

The vast majority of the assets developed and owned by technology companies are intangible assets, i.e. they reside in their internal information and employees’ brain (Intellectual Capital or “IC”) and the output thereof (Intellectual Property or “IP”). It is estimated that in excess of 85% of the valuation of the NASDAQ Index companies (and of the new global wealth being created) lies in intangible assets. With smaller technology companies, this percentage is sometimes close to 100%. Nowadays, most technology based companies eventually fail or succeed in large part because of the way they handle their intellectual capital assets and convert those into strategic intellectual property assets.

Fundamentally, patents facilitate access to VC financing, market entry and job creation. Without patents and an effective IP environment, the process stalls and, in some cases, firms may never emerge. Without adequate IP protection, innovators are unable to attract investments, business creation is slowed and jobs lost. Evidence suggests that this same story plays out, albeit with differing dynamics, across all sorts of firms and all nations. Economic prosperity relies on job growth, and it is clear that strong, effective IP rights have a role to play in creating both.

This year we’re placing our focus on the rapid pace of development in autonomous vehicles and self-driving car technologies here on IPWatchdog. We’re still a fair ways off from the entrance of a self-driving vehicle into the consumer marketplace; some with a knowledge of the industry believe that the debut for autonomous vehicles won’t be experienced until 2020, with widespread…

Now more than ever succeeding is all about making better products and offering new and improved services quicker and more reliably than your competitors. Surprisingly, at a time when many major technology corporations are struggling to innovate, we see utter disdain for patent owners. Void from the discussion is any perspective on the real problems facing American companies – namely innovating to obtain a competitive advantage and set themselves apart from the competitors they have today and the competitors they will surely have tomorrow. Increased patent licensing, or outright acquisition of patents, will not only help, but will likely become essential for those companies who understand the importance of continually squeezing out innovation as fast and efficiently as possible.