Chapter 9 Flashcards
What is meant by appropriability?
The degree of which a firm is able to capture the rents from its innovations. How easy can competitors imitate the innovation.
What is meant by a patent?
A property right protecting a process, machine, manufactured item (or design for manufactured item), or variety of plant.
what is meant by a trademark?
protects words or symbols intended to distinguish the source
of a good
what is meant by a copyright?
A property right protecting works of authorship.
what are the requirments for a patent?
useful, novel and not be obvious
What is a patent troll?
A patent troll’s primary purpose in owning patents is to extort
money from other firms
what are patent thickets
A dense web of overlapping patents that can make it difficult
for firms to compete or innovate.
explain trade secrets?
Information that belongs to a business that is held private.
what is meant by norm based Intellectual proprietary?
Operate entirely on basis of implicit social norms that
are held in common by community members.
Does not rely on legislative authorities or contracts
what are the benefits of protecting a innovation?
Protecting an innovation helps ensure that the firm earns the lion’s share of the returns from the innovation. These returns can then be reinvested in further developing the technology, promoting the technology, and producing complementary goods.Protecting an innovation also preserves the firm’s architectural control, enabling
it to direct the technology’s development, determine its compatibility with othergoods, and prevent multiple incompatible versions of the technology from being produced by other firms.
