The economic system is generally understood to operate on the premise of exchange. The most important factor in economic development has always been technology, as a way to expand a limited resource base. Such increase in technology and knowledge is generally accepted by economists, but the mechanisms of exchange through which this happens are much less studied. Generally, a static analysis of product exchange, incorporating new technology, has been undertaken. This book explores the transition of trade in ideas from an exchange largely within firms and nations to an exchange between firms and nations. This process has been going on since the beginning of the patent system, where importing (trading) technology was made policy in 1474, more than 500 years ago. However, during the past 25-30 years, a growth in exchange of technology between specialized firms, cooperating based on patent licensing, has been phenomenal, with annual licensing transactions exceeding a trillion dollars, not counting value of cross-licensing. Such specialized exchange has been seen in history but not at this scale and level of coordination.Using principles of experimental economics, the author investigates the licensing contract and mechanisms of exchange (rules of trade) as this exchange moves towards organized markets with prices. A key issue concerns the effect of introducing demand side bidding, through which the patent system introduces specialization and multiple use of the same technology in different new products, thus expanding the use of technology a firm has to more actors, products, and consumers. The risk and uncertainty in market access for cheaper, better and unique products and services are reduced through new and competitive technology.Questions raised are related to theoptimal integration of information and rules in dynamic exchange of patents through institutions. The view presented shows how inventors and traders can sell their intellectual property to buyers in a producer market, in this case in licensing contracts on patents, to diversify risk and monetize value based on an experimental economic study where the performance and behavioral properties of these institutions is the object of investigation. More fundamentally the work illustrates the theoretical, design, and patent system policy issues in a transition from personal to impersonal trade in ideas. This book explores the transition of trade in ideas from an exchange largely within firms and nations to an exchange between firms and nations. This process has been going on since the beginning of the patent system, where importing (trading) technology was made policy in 1474, more than 500 years ago. However, during the past 25-30 years, a growth in exchange of technology between specialized firms, cooperating based on patent licensing, has been phenomenal, with annual licensing transactions exceeding a trillion dollars, not counting value of cross-licensing. Such specialized exchange has been seen in history but not at this scale and level of coordination.Using principles of experimental economics, the author investigates the licensing contract and mechanisms of exchange (rules of trade) as this exchange moves towards organized markets with prices. A key issue concerns the effect of introducing demand side bidding, through which the patent system introduces specialization and multiple use of the same technology in different new products, thus expanding the use of technology a firm has to more actors, products, and consumers. The risk and uncertainty in market access for cheaper, better and unique products and services are reducedthrough new and competitive technology.Questions raised are related to the optimal integration of information and rules in dynamic exchange of patents through institutions. The view presented shows how inventors and traders can sell their intellectual property to buyers in a producer market, in this case in licensing contracts on patents, to diversify risk and monetize value based on an experimental economic study where the performance and behavioral properties of these institutions is the object of investigation. More fundamentally the work illustrates the theoretical, design, and patent system policy issues in a transition from personal to impersonal trade in ideas.

Pioneering view of the patent system as an exchange system, with economic, sociological, and policy implications Demonstrates, state-of-the-art applications of economic experimental design, procedure, and software Challenges standard non-trade view of technology and economic development Includes supplementary material: sn.pub/extras

Autorentext

Eskil Ullberg is Adjunct Professor of Economics at George Mason University (Fairfax, Virginia, USA) and Director of the Trade in Ideas Program hosted at the Institute for Management of Innovation and Technology (Sweden). His research interest is on markets in patents, and how they leverage the human capital formation, especially for developing countries, through exchange in human ideas leading to specialization in patented technology and thereby to gains in the global stock of technology. He has published books, articles and policy speeches on the subject including markets in patents (IP) as a new economic development policy emphasising the importance of institutional arrangements, and management of risk and uncertainty through IP strategy. This new economic development policy was evaluated in a pilot-study with five+ developing countries in 2017-2019 with the purpose of informing a policy discussion on trade in ideas (IP). Prof. Ullberg is a pioneer in experimental studies of markets in patents and is active in the patent market and cross-border trade discussions with Members of and the institutions of the United Nations, the European Commission and the World Trade Organization.