Patents Are Hurting Innovation

In recent years, there has been a huge increase in the number of patents sought as well as the number of lawsuits filed over patents.

“In his 2008 book Patent Failure, Bessen and co-author Michael Meurer argue that after taking the cost of litigation into account, the effect of patenting in all industries except pharmaceuticals and chemicals was to reduce the profitability of innovation rather than to increase it.” 

It’s interesting to note that patents came about as a way to ensure the creators of novel ideas reaped the rewards for their efforts and creativity – and yet, that’s not what is happening.

While there is a first-mover advantage, simply filing paperwork won’t protect that advantage indefinitely.  You must continue to innovate and improve your product/service, or you can’t be surprised when customers leave you for a scrappy upstart that isn’t resting on its laurels.

Are you coasting on your past successes?  What are you doing to ensure you’re meeting the ever-changing needs of your customers/guests?  How else can you innovate internally – through cost-savings, by reducing your carbon impact, in making routine tasks quicker or easier, and so on?

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