EnvEcon 143

Economics of Intellectual Property Rights and Innovation

Lectures and Readings

Syllabus with link to Reading list is available at http://are.berkeley.edu/courses/EEP143/fall2007

The main text is Suzanne Scotchmer, Innovation and Incentives, Cambridge, MA: MIT Press, 2004, available for $22.00 at UC Berkeley Bookstore , and on reserve at Moffitt Library HC79.R4.S26 2004.

1. Introduction

Two useful resources and a fun reference to browse:

Mokyr, Joel. 1990. The Lever of Riches. New York. Oxford University Press [on the history of Western innovation].

Fagerberg, Jan 2005. "Innovation: A Guide to the Literature." Oxford Handbook of Innovation. Oxford University Press, Oxford, UK.

Burke, James. Connections Time-Warner [A fun book of a TV series.]

2. A Brief History of Institutions for Innovation

Scotchmer, S. Innovation and Incentives, Chapter 1. “Institutions: A Brief Excursion through History.”

3. The Simple Economics of Information and Invention

Scotchmer, S. Innovation and Incentives, Chapter 2. “Investing in Knowledge.”

Nelson, R. 1959. "The Simple Economics of Basic Scientific Research.” Journal of Political Economy 67:304

4. Investing in Knowledge

Scotchmer, S. Innovation and Incentives, Chapter 2. “Investing in Knowledge.”

5 and 6. Intellectual Property Rights

Patents, Copyrights, Secrecy, Technical Protection, Plant Parents, Plant Variety Protection

Scotchmer, S. Innovation and Incentives, Chapter 3. “A Primer for Nonlawyers on Intellectual Property.”

Wright, B.D. 2006. Plant Genetic Engineering and Intellectual Property Protection Agricultural Biotechnology in CA

Series,Pub.8186, UC DANR

Bode, J. Incentive Mechanism Table

7. How Innovation Incentives Work

Simple One-Stage Model: Single Innovator

Scotchmer, S. Innovation and Incentives, Chapter 4

Scherer, F.M. 1972. "Nordhaus' Theory of Optimal Patent Life: A Geometric Reinterpretation." American Economic Review 62 no. 3, June: 422- 427

8 and 9. How Innovation Incentives Work (continued)

Simple One-Stage Model: Competition

Scotchmer, S. Innovation and Incentives, Chapter 4

10. Innovation: Case Studies

Green Revolution
Hybrid Corn
Ink-Jet Printer
Email

Evenson, R.E., et al.2003: "Assessing the Impact of the Green Revolution, 1960-2000"Science 300, 758

Griliches, Z. 1960. "Hybrid Corn and the Economics of Innovation." Science, New Series, 132, 3422 (July 29): 275-280

"Spitting Image." 2002 Economist September 19

"The invention of Email" 1998. Pretext Magazine 1998

11. Midterm 1

12. Cumulative Innovation

Scotchmer, S. Innovation and Incentives, Chapter 5

13. Cumulative Innovation (continued)

Scotchmer, S. Innovation and Incentives, Chapter 5

Basic/Applied
Quality Ladders
Research Tools

14. Licensing and Collaborations

Scotchmer, S. Innovation and Incentives, Chapter 6

Licensing:

- fixed fee vs. per unit royalty

- competitive effects

- compulsory licensing?

- ex ante vs. ex post

15-16. Enforcement

Scotchmer, S. Innovation and Incentives, Chapter 7

Contracts
Litigation of infringement
Trolls
Technical Means
Antitrust and innovation markets

17. Patent Thickets

Golden Rice?
Transgenic corn
Stem Cells

Bergman,K. and G. Graff. 2007. “The global stem cell landscape; implications for efficient technology transfer and commercial development.” Nature Biotechnology 25, 4, April :419-424

Schimmelpfennig, D.2004 “Agricultural Patents: Are they developing bad habits?” Choices, First Quarter .

Jensen K, Murray F. 2005 "Intellectual property landscape of the human genome." Science. Oct 14;310(5746):239-40.

18. Open Source

Smith, A. The Wealth of Nations, Chapter 1

Linux and copyleft

Benkler, J. 2004 “Commons-Based Strategies and the Problems of Patents” Science 305 20 August: 1110-1111

Biobricks

BiOS

Jefferson, R. 2006. “Science as a Social Enterprise: The CAMBIA BiOS Initiative.” Innovations. Fall.

Synthetic Biology

Endy, D. 2005 “Foundations for engineering biology.” Nature ,04342 Vol. 438, 24 November.

Henkel, J. and S.M. Maurer 2007. "The economics of synthetic biology: efforts to make biology more like electronics raise serious economic issues. Open Source Methods Can Help." Molecular Systems Biology

Rai, Arti and J. Boyle.2007. "Synthetic Biology: Caught between Property Rights, the Public Domain, and the Commons." PLOS Biology 5 no. 3

19. Diffusion and Adoption

Hall, Bronwyn.2005 "Innovation and Diffusion." in J. Fagerberg, Ed. Oxford Handbook of Innovation. Oxford University Press, Oxford, UK.

David, P.1990 “The Dynamo and the computer: Historical Perspective on the Productivity Paradox.”

Electric power
Computers
Transgenic crops
Tractors vs. horses

20 and 21. Networks, Compatibility, Standards and Pools

Scotchmer, S. Innovation and Incentives, Chapter 10

JPEG
HD DVD vs. Blue Ray
PIPRA

Atkinson, R. et al. “Public Sector Collaborations for Agricultural IP Management.” Science 301: 174-175

Midterm 2

22. Institutions and Innovations

Scotchmer, S. Innovation and Incentives, Chapter 8

Public Financing
Public patenting and the Bayh-Dole Act
University Licensing and Offices of Technology Transfer
Research Exemption?

23. Public Production and Support of R&D

Scotchmer, S. Innovation and Incentives, Chapter 8

World food

Pardey,P.G. and B.D. Wright. 2003. “Agricultural R&D, Productivity and Global Food Prospects.” Chapter 2 in M.J. Chrispeels and D.E. Sadava, eds. Plants, Genes, and Crop Biotechnology, 2nd ed. Sudbury: Jones and Bartlett.

Biofuels Initiative at Berkeley

24. International Aspects of IP Protection

Scotchmer, S. Innovation and Incentives, Chapter 8

Paris Convention
Berne Convention
TRIPS and bilateral negotiations
Compliance
Who patents where?
Who gains?

25. Conference on Biodiversity and Indigenous People’s Rights, and Drugs for Neglected Diseases

Can bioprospecting rights save the Amazon?

Koo, Bonwoo and Brian D. Wright. 1999. “The Role of Biodiversity Products as Incentives for Conserving Biological Diversity: Some Instructive Examples.”The Science of the Total Environment 240(1999): 21–30.

Hayden, Cori. “Bioprospecting: Can pharmaceutical research give back?” Revista: Harvard

Review of Latin America. Fall 2004/Winter 2005: 40-41

Maurer, S.,A.Rai. and A. Sali 2004. “Finding Cures for Tropical Diseases: Is Open Source the Answer?” Public Library of Science: Medicine 1 56-58

Optional Extra: (Very informative, and the comments are great too!):

Greene, S. “Indigenous People Incorporated.” Current Anthropology 45, 2, April 2004.

More extras for those interested in this topic (not required reading):

Wright, B.D. and P.G. Pardey. 2006. “The Evolving Rights to Intellectual Property Protection in the Agricultural Biosciences.” International Journal of Technology and Globalization 2, nos. 1/2: 12-29.

Wright, B.D. and P.G. Pardey. 2006. “Changing Intellectual Property Regimes: Implications for Developing Country Agriculture.” International Journal of Technology and Globalization 2, nos. 1/2: 93-114.

Boettiger, Sara, Eric VanDusen, Gregory D. Graff, Philip G. Pardey and Brian D. Wright. 2003. “Intellectual Property Rights for Plant Biotechnology: International Aspects.” Handbook of Plant Biotechnology, eds. Paul Christou and Harry Klee. John Wiley & Sons Ltd.