The American patent system is the lifeblood of the U.S. innovation economy. Businesses that secure patents innovate at higher rates than those that lack intellectual property; startups and new businesses that hold patents attract capital more easily than those that do not; and startups that obtain a patent are more likely to go public.
A relatively simple way to boost the economy and make America even greater is to fix a patent system gone awry. In recent years, major changes to intellectual property policy by Congress, the courts and the executive branch have thrown the system out of whack, deterring inventors from the kind of innovation that creates jobs and growth.
“Governments from East to West all want the same thing: economic growth. Now more than ever, world economies must choose whether they will grow forward into the future or shrink back from endless innovative potential,” said Mark Elliot, executive vice president of GIPC. “Each year, this report attempts to highlight best practices among the world’s intellectual property environments. In 2017, many of the same challenges remain.
This report examines the importance of patents as a measure of invention to economic growth and explores why some areas are more inventive than others. Why should we expect there to be a relationship between patenting and urban economic development? As economist Paul Romer has written, the defining nature of ideas, in contrast to other economic goods, is that they are non-rival: their use by any one individual does not preclude others from using them.
The majority of recent patent litigation has been driven by "nonpracticing entities" (NPEs) – firms that generate no products but instead amass patent portfolios just for the sake of enforcing IP rights.
Extraordinary technological breakthroughs over the last 300 years have touched almost every aspect of human activity and transformed the world’s economies. The 2015 report shows how three historical breakthrough innovations – airplanes, antibiotics and semiconductors – fueled new business activity. It examines three current technologies with breakthrough potential: 3D printing, nanotechnology and robotics. And it considers the future outlook for innovation-driven growth.
Innovation activity is at an all-time high. Using patents as a proxy for innovation, there were more unique inventions that were published applications or granted patents over the last year than ever before in the history of humankind. Another finding this year is that while patent activity has been on an upward climb, its ascent over the past year was the slowest since the global economic recession in 2009. This could be the result of myriad factors, from changes in legislation to economic, political, social or industry stresses.
Small business owners lamenting patent trolls and calling on Congress to support the chairman's Innovation Act, which aims to rein in abuse of the patent litigation system.