Sequential Innovation, Patents, And Imitation

Bessen, James E. and Maskin, Eric S., "Sequential Innovation, Patents, And Imitation" (January 2000). MIT Dept. of Economics Working Paper No. 00-01.

Abstract:

How could such industries as software, semiconductors, and computers have been so innovative despite historically weak patent protection? We argue that if innovation is both sequential and complementary--as it certainly has been in those industries--competition can increase firms' future profits thus offsetting short-term dissipation of rents. A simple model also shows that in such a dynamic industry, patent protection may reduce overall innovation and social welfare. The natural experiment that occurred when patent protection was extended to software in the 1980?s provides a test of this model. Standard arguments would predict that Rintensity and productivity should have increased among patenting firms. Consistent with our model, however, these increases did not occur. Other evidence supporting our model includes a distinctive pattern of cross-licensing in these industries and a positive relationship between rates of innovation and firm entry.

Facts on voip

• Integration into global telephone number system Whilst the traditional Plain Old Telephone System (POTS) and mobile phone networks share a common global standard (E.164) which allocates and identifies any specific telephone line, there is no widely adopted similar standard for VoIP networks.
• Protocols used to carry voice signals over the IP network are commonly referred to as Voice over IP or VoIP protocols. They may be viewed as commercial realizations of the experimental Network Voice Protocol (1973) invented for the ARPANET.
• Voice over IP traffic might be deployed on any IP network, including ones lacking a connection to the rest of the Internet, for instance on a private building-wide LAN.

This site is growing and will contain information like why voip, voip phone system and internet telephony voip.