RE: Do patents really foster innovation?

From: Dickey, Michael F (michael_f_dickey@groton.pfizer.com)
Date: Fri Mar 07 2003 - 12:50:37 MST

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    -----Original Message-----

    Emlyn O'regan <oregan.emlyn@healthsolve.com.au> wrote:

    > This could be taken as strong evidence in support of intellectual property
    > regulation, in its role as a protector/encourager of innovation. What is
    > shown is that, in the absense of any mechanism to protect IP in the area
    of
    > illegal drugs, real innovation is very low.
    >
    > Comments?

    I would certainly be interested to hear what extropians think of Patents (at
    least, mechanical innovation patents) There is a large portion of
    libertarians here, and I generally consider myself one (a 'neo'-libertarian
    I guess to be more accurate) but I do not see much value in the arguments
    against IP. They seem to center around 'see, there has been plenty of
    innovation without patents, the wheel, steam engines, etc' to which I would
    respond 'yeah, but those took thousands of years to come about'

    It seems to me so accurate to assume that patents spur innovation for the
    sake of innovation alone, as opposed to necessity innovation. Imagine a
    middle ages feudal lord who gave 10 acres to anything that a peasant
    invented that he considered directly valuable to the lands? Which meant
    that instead of people happening to come across good ideas, here was a cash
    prize waiting for a good idea. So people would actively pursue and think
    about what could be a good idea. This seems so much more efficient at
    generating innovation that a mere necessity based system.

    Additionally, it seems to me that a parallel can be drawn to the common
    argument against communism, that not rewarding a worker gives them no desire
    to excel. Sure some people who love to be doctors would slave for years in
    schools to be a doctor, only to get the pay of a garbage man, but capitalism
    dictates the rewards for efforts based on the demand, so if there are not
    enough Doctors around, they would start making more, and more people who
    otherwise would have been content as garbage men train to become doctors.
    (Not to put down sanitation workers, their efforts are easily as valuable in
    some sense, considering the diseases that can come from poor sanitary
    conditions)

    Similarly, sure some innovations will come about without IP, but no where
    near as many as would with it, since it gives people incentive to be
    inventive for the pure reason of inventing.

    And its also important to note the value of IP in medicine, would
    pharmacuetical companies really invest 400 million dollars to make a first
    pill only to have everyone else start making them for a buck a piece? I
    doubt it.

    Michael Dickey

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