Software patents stifle technological creativity and innovation
Evidence indicates that software patents and dense patent thickets are often utilized for strategic maneuvering rather than fostering R&D, frequently resulting in reduced innovation intensity and suboptimal incentives.
The claim asserts that software patents stifle technological creativity and innovation. Paper [1] provides direct empirical evidence showing that software patents are associated with lower R&D intensity at the firm level and are used strategically rather than to encourage traditional innovation. Paper [0] explains the mechanism of patent thickets in complex technologies leading to suboptimal R&D incentives. Papers [2] and [3] discuss pharmaceutical patent thickets rather than software specifically, making them less directly on point, but the retrieved software-specific and general thicket literature uniformly supports the notion that dense patenting strategies impede competitive innovation and R&D.
James E. Bessen. Patent Thickets: Strategic Patenting of Complex Technologies. 2002. https://doi.org/10.2139/ssrn.327760
Patent thickets and low patent standards lead to suboptimal R&D incentives and force innovators to share rents through cross-licenses.
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James E. Bessen, Robert M. Hunt. An Empirical Look at Software Patents. 2004. https://doi.org/10.2139/ssrn.461701
Software patents are shown to substitute for R&D at the firm level, correlating with lower R&D intensity rather than driving traditional innovation.
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