The Anti-innovators Flashcards
Why, in the author’s opinon, have U.S. government procurement programs in the past led to technological innovation?
U.S. procurement programs worked so well in part because the Pentagon gave its business to a diverse group of private firms.
It also required contractors to share their technologies with universities and other private firms, encouraging further innovation outside the government.
The Pentagon also encouraged contractors to adopt open technical standards–such as the set of protocols, established in 1982 that specified how data should be packaged and transmitted on the internet–which allowed knowledge to spread quickly and easily.
According to the author, in what ways has copyright law “punished” innovators and start-ups? How has legislation changed over time?
Heavy licensing fees and barriers to entry for hardly established start-ups.
How have employment regulations set by the states hurt start-up growth and innovation? How has this changed over time.
Historically, technical workers such as mechanics and engineers moved freely from job to job, spreading new technologies across the industry. Today, however, a variety of regulations limit that mobility.
Examples include:
- Non-compete agreements, which prohibit employees from leaving one company to join or start another in the same industry.
- Certifications to work, which creates another barrier to innovation.
In short, what is the main argument made by the author?
The main argument of the article:
“Although the United States remains innovative, government policies have, across the board, increasingly favored powerful interest groups at the expense of promising young start-ups, stifling technological innovation.”
What has changed about government procurement policies that has contributed to a decline in technological innovation?
Examples (2)
Instead of awarding contracts to start-ups and spin offs, the Pentagon has favored traditional defense contractors.
In 1977 with the development of high-speed semiconductors. Government contractors were forbidden from sharing their research.
Donald Rumsfeld from 2001 to 2006. Restricted Pentagon bidding to major contractors, slashed funding to university programs, and classified most of he technology that it produced.
How has patent law changed over the years with respect to software innovation? How is this a problem for start-ups?
Patent litigation has become a serious problem for small software firms, many of which make easy targets for aggressive lawyers.
Relatively new phenomenon. U.S. software industry grew up patent free. In 1972, the Supreme Court ruled that software could not be patented, reasoning that unlike mechanical devices, abstract software algorithms are difficult to tie to a specific inventive concept.
A decade later, however, after persistent lobbying for patent lawyers, Congress enacted the Court of Appeals for the Federal Circuit, a new body designed to hear all appeals in patent cases. The new court, constantly seeking to expand its role, began side-stepping the Supreme Court in the 1990s, extending patent law to cover software. It also loosened its restrictions on vague-sounding patents, such as those for “information-manufacturing machines”.
What has been the consequence of the decision to establish the Court of Appeals of the Federal Circuit?
A surge in patent lawsuits.
What are patent trolls?
Companies that exist solely to buy and litigate patents. They are often drawn to software patents , which are often vague enough to be widely applicable.
