Question

1. How and why has the process of combinatorial innovation been faster in IT (and software in particular) than many other industries?

2. Explain how patents can help this process and how they might hinder it. Compare the costs and benefits of patents and copyrights versus the open source approach or having no patent regime at all in enabling rapid combinatorial innovation, as well as the impact of "patent thickets."

Answer 1

1.Combinatorial innovation is an industry term.It is the method of combining the existing multiple technology and creating a new one by integrating them intelligently. In  combinatorial innovation new product or service is developed by combining multiple old ideas.It is entirely different from innovation.

Eg: Smart phone which is developed by combining the old technologies.

Combinatorial innovation is faster in IT(software)field.Because combining process of technology is very easy in software field.Talented software development team can integrate multiple services easily within a few days..

Eg:API(application programming interface) is a combinatorial innovation in software field

No more experimental area or training is not needed in software field

But combinatorial innovations in the fields otherthan software need months or even years for completing the designing.

combinatorial innovations in IT field modernise and transform the technology.So there develop a great demand.

They use technologies like virtual and augmented reality, artificial intelligence and cognitive computing etc. to make the products appealing to the consumers.combinatorial innovation is success ful in IT field with diversity,technical excellence, and innovation collaboration.

Patent is the granting of property right to the inventor. A soveriegn authority is giving patent to the inventor.Pantents give permission to a company or an individual to condinue developing innovative products without the fear of infringment.

According to second best theory of patents,patents are necessary to solve a double problem-problem of incentives and problem of knowledge diffusion.patent encourage firms to disclose their inventions

2)Patent recognise and reward innovators.Innovators knowledge becomes a commercially tradable asset.Actually inventors expect profit from owning right to their innovations. Patents promote innovations and so economic growth. It promote knowledge sharing and transfer of technology.Thery are free to commercialise their innovations and earn maximum profit.

patent usually last up for 20 years.But patent holder has to pay a fee periodically during this perid.cost of filing patent is very costly.The final cost to patent an idea depends of the complexity of innovation and the type of patent required.

Because of the existence of a costly patent and copyright system,there is a tendency to select an open source approach in the place of patent system.

Patent thickets indicating products consisting of ten or hundreds of such modular components.Patent thickets make a barrier to entry into patenting