Text A Patents Are a Terrible Way to Measure Innov...
Dominic Basulto
On the surface,patents provide an easy way to measure innovation.After all,patent statistics are readily available.They are objective and they are quantifiable,so you can quickly tally up the number of patents by company,city or nation,and immediately have a sense of how innovation varies by geography,industry or even time period.It's no wonder that patent data is often used as a leading indicator of innovation.
But just how strong is the link between patent activity and innovation in an era of exponential technological progress?
Just comparing the absolute number of patents on a company-by-company basis is misleading,to say the least.For example,consider the number of patents that companies have received thus far in 2015.According to this metric,IBM and Samsung are far and away the most innovative companies in the world,with 3,059 and 3,052 patents,respectively.Google ranks number five,with 1,083 patents,just ahead of Microsoft(No.7),with 1,037.Apple,typically considered one of the most innovative companies in the world,comes in at only No.11,with 780 patents.Facebook doesn't even crack the top 40.
Using patents as a gauge of how innovation varies between countries can also result in some head-scratching findings.For example,judged in terms of patents alone,the 2015 Bloomberg Innovation Index says the United States ranks No.4 in the world in terms of innovation,trailing Korea,Japan,and China.Behind the United States is Germany—an innovative country,to be sure,but probably not the first European country you think of when it comes to innovation.Shouldn't a country from Scandinavia—generally considered to be one of the most innovative regions in the world—be in the top five?
Even applying a scaling factor—such as dividing patent applications by population to smooth out the impact of size—results in some apparent anomalies.For example,the OECD uses the concept of patent intensity(measuring patents as a percentage of every 10,000 residents of a specific metropolitan area),a statistic that can be used to calculate the world's most innovative cities.In 2013,America's most innovative cities were San Diego,San Francisco,Boston and Minneapolis.These cities tend to score well because they are home to the types of companies(technology,pharmaceutical and biotech)that are most likely to file patents to protect their innovations.But what about cities that are home to innovators and creative thinkers,but not necessarily companies that file a lot of patents?
A slightly more accurate way to measure the innovation impact of patents might be a factor such as patent citations.Instead of tallying up the number of patents on an absolute level,tracking the number of patent citations would appear to do a more precise job of valuing the innovative value of a patent:If a patent has been cited quite often by others,then it must have more value than one that has not.Think of heavily cited patents as the innovation world's equivalent of the first page of Google search results—they're what people see when they want to build on current innovation work in the field.
However,just because you have a lot of highly cited patents(and not just a bunch of junky,frivolous patents)doesn't immediately mean that you can create valuable products from those patents.If you think about innovation as a process from first invention to final product,then patents only measure the front-end of that process—the actual invention—rather than the back-end of innovation:the launch of the commercialized product.If your research and develvopment system is broken,you may be front-loading the system with a lot of patents,without very much to show for it.
Moreover,in the 21st century,technological change just happens too fast,eroding the value of patents once intended to last for years.Innovation life cycles are now measured in months,not years.Innovation is happening around business methods and processes as much as around specific products.As a result,simply stockpiling patents for the long haul doesn't always work out as planned.By the time you try to use those patents,the market may have decisively shifted away from you.
And that raises a further,far more troubling question:Why exactly are we seeing so many companies focusing on stockpiling patents?The fact that IBM and Samsung have each received more than 3,000 patents in just the first five months of 2015 is rather startling.The naive answer would be that we are living in a time of unrivaled technological innovation,in which companies are cranking out patents at a prodigious pace.
A more nuanced answer would be that patents have become a potential defensive tool against patent trolls—making the defensive acquisition of companies simply for their patents a viable strategy.In short,paying millions of dollars for patents may be cheaper than paying tens of millions of dollars in legal fees or other penalties.
And that's the really disturbing feature of 21st century innovation—patent trolls are transforming the patent from a proud badge of innovative activity into something negative—a“tax on innovation.”And that tax adds to the cost of everyday products.According to one estimate,one half of the cost of producing a smartphone is used to pay patent royalties.One professor at Harvard Business School has even suggested that patents might be destructive,rather than creative,in terms of their ultimate economic impact.
That means patents might be a better proxy for how litigious American business has become rather than how innovative a specific company or industry has become.Within the tech sector alone,90 percent of all tech patent cases involve patent trolls.In the broader U.S.economy,that figure is 68 percent.That's an enormous amount of legal activity attempting to wring concessions from deep-pocketed tech companies,a massive drag on future economic growth.
So,if not patents,then what might be the best metric to measure innovation?
When Tim O'Reilly asked that same question five years ago,some of the responses were enlightening—there seemed to be a growing consensus that there should be a greater focus on assessing the“end user utility”of specific innovations,not on simply aggregating the number of patents or totaling up the amount spent on research and development.And such a measure would have to be robust enough to cover all types of innovations—not just patents from big conglomerates and pharmaceutical companies—but also the type of innovation found in the maker world,in the open source world,and in emerging new industries where small companies just don't have“time,money or inclination to divert effort from innovation to patents.”
The reason why all this matters,of course,is because the subject of patent reform—a seemingly perennial topic—is once again on the radar of legislators and lobbyists in Washington.Instead of viewing patents as we once did—as a way to encourage inventiveness and innovation,we may be better suited to see them for what they have become:an economic drag and an attractive target for patent trolls,who see them as a way to exact tributes from deep-pocketed tech companies.Tesla has even gone so far as to open source its entire patent portfolio.Reforming the patent system,then,will require reforming the way we think about patents and the very nature of innovation.
(1,247 words)
New Words＆Expressions
1.quantifiable［΄kwɑntəˌfɑIəbl］adj.able to be measured
2.tally up:to calculate the total of something
3.exponential［ˌekspə΄nenʃ(ə)l］adj.growing or increasing very rapidly
4.absolute number n.绝对数
5.metric［΄metrIk］n.using or relating to a system of measurement that uses metres,centimeters,litres,etc.
6.gauge［geIdʒ］n.a device for measuring the amount or size of something
7.head-scratching adj.hard to understand,explain,or decide about
8.trail v.to pull something behind you,especially along the ground,or to be pulled in this way
9.anomaly［ə΄nɔm(ə)lI］n.something that is noticeable because it is different from what is usual
10.junky［΄dʒʌŋkI］adj.worthless
11.frivolous［΄frIv(ə)ləs］adj.having no useful or serious purpose
12.erode v.to slowly reduce or destroy something
13.stockpile v.a large amount of food,goods,or weapons that are kept ready for future use
14.for the long haul:长远地
15.startling adj.surprising and sometimes worrying
16.unrivaled［ˌʌn΄rɑIvəld］adj.having no equal；better than any others
17.crank out:to produce something with no special care or effort
18.prodigious［prə΄dIdʒəs］adj.extremely great in ability,amount,or strength
19.nuanced［΄njuːɑːnst］adj.made slightly different in appearance,meaning,sound,etc.
20.viable［΄vɑIəbl］adj.able to work as intended or able to succeed
21.proxy［΄prɔksI］n.a person authorized to act for someone else
22.litigious［lI΄tIdʒəs］adj.too often taking arguments to a court of law for a decision
23.deep-pocketed adj.rich
24.conglomerate［kən΄glɔm(ə)rət］n.a company that owns several smaller businesses whose products or services are usually very different
25.pharmaceutical［ˌfɑːmə΄suːtIk(ə)l；-΄sjuː-］adj.relating to the production of medicines
26.perennial［pə΄renIəl］adj.lasting a very long time,or happening repeatedly or all the time
27.lobbyist［΄lɔbIIst］n.someone who tries to persuade a politician or official group to do something
Notes
1.Dominic Basulto is a futurist and blogger based in New York City.He published this essay by The Washington Post on 14 July,2015.
2.Bloomberg Innovation Index is an annual ranking of how innovative countries are.It is based on six criteria:research and development,manufacturing,high-tech companies,post-secondary education,research personnel,and patents.Bloomberg uses data from the World Bank,the International Monetary Fund,the World Intellectual Property Organization,the United States Patent and Trademark Office,the OECD and UNESCO to compile the ranking.
3.Scandinavia is a historical and cultural-linguistic region in Northern Europe characterized by a common ethno cultural North Germanic heritage and mutually intelligible North Germanic languages.It comprises the three kingdoms of Denmark,Norway,and Sweden.Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,whereas modern Denmark consists of Jutland and the Danish islands.
4.Economic Co-operation and Development(OECD)is an international economic organisation of 34 countries,founded in 1961 to stimulate economic progress and world trade.It is a forum of countries describing themselves as committed to democracy and the market economy,providing a platform to compare policy experiences,seeking answers to common problems,identifying good practices and coordinating domestic and international policies of its members.
5.San Diego is a major city in California,on the coast of the Pacific Ocean in Southern California,approximately 120 miles(190 km)south of Los Angeles and immediately adjacent to the border with Mexico.With an estimated population of 1,381,069 as of July 1,2014,San Diego is the eighth-largest city in the United States and second-largest in California.San Diego is the birthplace of California and is known for its mild year-round climate,natural deep-water harbor,extensive beaches,long association with the U.S.Navy,and recent emergence as a healthcare and biotechnology development center.
6.San Francisco,officially the City and County of San Francisco,is the cultural,commercial,and financial center of Northern California and the only consolidated city-county in California.San Francisco encompasses a land area of about 47.9 square miles(124 km2)on the northern end of the San Francisco Peninsula,which makes it the smallest county in the state.It has a density of about 18,187 people per square mile(7,025 people per km2),making it the most densely settled large city(population greater than 200,000)in the state of California and the second-most densely populated major city in the United States after New York City.San Francisco is the fourth-most populous city in California,after Los Angeles,San Diego and San Jose,and the 13th-most populous city in the United States—with a Census-estimated 2016 population of 870,887.The city and its surrounding areas are known as the San Francisco Bay Area,and are a part of the larger OMB designated San Jose-San Francisco-Oakland combined statistical area,the fifth-most populous in the nation with an estimated population of 8.7 million.
7.Boston is the capital and largest city of the Commonwealth of Massachusetts in the United States.Boston also served as the historic county seat of Suffolk County until Massachusetts disbanded county government in 1999.The city proper covers 48 square miles(124 km2)with an estimated population of 667,137 in 2015,making it the largest city in New England and the 24th-largest city in the United States.The city is the anchor of a substantially larger metropolitan area called Greater Boston,home to 4.7 million people and the tenth-largest metropolitan area in the country.Greater Boston as a commuting region is home to 8.1 million people,making it the sixth-largest Combined Statistical Area in the United States.
8.Minneapolis is the county seat of Hennepin County,and larger of the Twin Cities,the 14th-largest metropolitan area in the United States,containing approximately 4 million residents.As of 2016,Minneapolis is the largest city in the state of Minnesota and 46th-largest in the United States with 410,939 residents.Minneapolis and Saint Paul anchor the second-largest economic center in the Midwest,behind Chicago.
9.Patent troll:In pejorative usage,a patent troll is a person or company that attempts to enforce patent rights against accused infringers far beyond the patent's actual value or contribution to the prior art.Patent trolls often do not manufacture products or supply services based upon the patents in question.However,some entities which do not practice their asserted patent may not be considered“patent trolls”when they license their patented technologies on reasonable terms in advance.Other related terms include patent holding company(PHC),patent assertion entity(PAE),and non-practicing entity(NPE),which may or may not be considered a“patent troll”depending on the position they are taking and the perception of that position by the public.A variation of the problem is when companies do make some degree of attempt to develop products but,when their product fails,conclude that they can instead be more successful at litigating a portion of the profits from those that become more successful at development.Patent trolling has been less of a problem in Europe than in the U.S.because Europe has a loser pays costs regime.In contrast,the U.S.generally used the so-called American rule,providing that each party is responsible for paying its own attorney's fees,until U.S.Supreme Court decided Octane Fitness,LLC v.ICON Health＆Fitness,Inc.on April 29,2014.
10.Tesla Motors,Inc.is an American automotive and energy storage company that designs,manufactures,and sells luxury electric cars,electric vehicle powertrain components,and battery products.Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA.In the first quarter of 2013,Tesla posted profits for the first time in its history.
Reading Comprehension
Ⅰ.Questions for discussion
1.Can we,according to the author,use patents as the only criterion in judging innovativeness?Why or why not?
2.Are patent citations,according to the author,a satisfying index of innovativeness?Why or why not?
3.Why do so many companies focus on stockpiling patents?
4.What,in your opinion,might be better indicators of innovativeness besides the“end user utility”mentioned toward the end of the text?
Ⅱ.Judge,according to the text,whether the following statements are true(T)or false(F).
1.Considering the number of patents that companies have received thus far in 2015,IBM and Samsung are far and away the most innovative companies in the world,with 3,059 and 3,052 patents,respectively.
2.The United States is less innovative than South Korea,China and Japan.
3.Scandinavia is generally considered to be one of the most innovative regions in the world.
4.Having a lot of highly cited patents means that you can create valuable products from those patents.
5.One of the reasons for companies focusing on stockpiling patents is that they want to produce more innovative products.
Vocabulary
Fill in the blanks with words that best complete the sentences.
( )1.As I explain in an earlier post,however,beauty is not in the eyes of the beholder；it is an objective,________trait of someone like height or weight.
A.quantifiable B.qualified
C.quantified D.qualifiable
( )2.His critics say his fumbling on the issue of reform has________his authority.
A.erodes B.eroded C.increases D.increased
( )3.His exercise inspired me to________how much my family saved in 2011 from not having cable.
A.tally on B.tally in C.tally out D.tally up
( )4.The group says it wants politicians to stop wasting public money on what it believes are________projects.
A.useful B.frivolous C.helpful D.worthy
( )5.This business generates cash in________amounts.
A.prodigiously B.prodigy C.huge D.well
( )6.Sometimes the results may be rather________.
A.startling B.startled C.startle D.scream
( )7.Cash alone will not make Eastern Europe's ban ks________.
A.viability B.viable C.run D.stands
( )8.Since 2006 more patent lawsuits have been filed in China than anywhere else,even________America.
A.litigious B.litigate C.litigant D.litigation
( )9.The Wilderness Society Congress________to authorize the Endangered Species Act.
A.lobbyism B.lobby C.lobbyist D.lobbied
( )10.The second was a________investor who profited handsomely by shortselling Webvan in its heyday.
A.poor B.deep-pocketed C.mean D.bad
Cloze
Of the four choices given below for each blank,choose the one that best fits into the passage.
Many students find the experience of attending university lectures to be a confusing and frustrating experience.The lecturer speaks for one or two hours,perhaps 1 the talk with slides,writing up important information on the blackboard, 2 reading material and giving out 3 .The new student sees the other students contin uously writing on notebooks and 4 what to write.Very often the student leaves the lecture 5 notes which do not catch the main points and 6 become hard even for the 7 to understand.
Most institutions provide courses which 8 new students to develop the skills they need to be 9 listeners and note-takers. 10 these are unavailable,there are many useful studyskills guides which 11 learners to practice these skills 12 .In all cases it is important to 13 the problem 14 actually starting your studies.
It is important to 15 that most students have difficulty in acquiring the language skills 16 in college study.One way of 17 these difficulties is to attend the language and study-skills classes which most institutions provide throu ghout the 18 year.Another basic 19 is to find a study partner 20 it is possible to identify difficulties,exchange ideas and provide support.
( )1.
A.extending B.illustrating C.performing D.conducting
( )2.A.attributing B.contributing C.distributing D.explaining
( )3.A.assignments B.information C.content D.definition
( )4.A.suspects B.understands C.wonders D.convinces
( )5.A.without B.with C.on D.except
( )6.A.what B.those C.as D.which
( )7.A.teachers B.classmates C.partners D.students
( )8.A.prevent B.require C.assist D.forbid
( )9.A.effective B.passive C.relative D.expressive
( )10.A.Because B.Though C.Whether D.If
( )11.A.enable B.stimulate C.advocate D.prevent
( )12.A.independently B.repeatedly C.logically D.generally
( )13.A.evaluate B.acquaint C.tackle D.formulate
( )14.A.before B.after C.while D.for
( )15.A.predict B.acknowledge C.argue D.ignore
( )16.A.to require B.required C.requiring D.are required
( )17.A.preventing B.withstanding C.sustaining D.overcoming
( )18.A.average B.ordinary C.normal D.academic
( )19.A.statement B.strategy C.situation D.suggestion
( )20.A.in that B.for which C.with whom D.such as