Patents drive commercialization
Daniel F. Spulber, 2021 - Elinor Hobbs Distinguished Professor of International Business and Professor of Strategy at the Kellogg School of Management at Northwestern. The Case For Patents, https://www.worldscientific.com/doi/pdf/10.1142/9789811225666_0001 //DH
F. Scott Kieff’s valuable discussion of patents finds that “the treatment of patents as property rights is necessary to facilitate investment in the complex, costly, and risky commercialization activities required to turn nascent inventions into new goods and services.32 Furthermore, property treatment is equally necessary to help society decide which inventive activities are worth protecting in the first instance.”33 Kieff critiques the “rewards” view of patents, pointing out that reward systems do not account for innovative activities after inventions have been made.34 He highlights both coordination and investment in commercialization: “The patent right to exclude competitors who have not shared in bearing these initial costs provides incentives for the holder of the invention and the other players in this market to come together and incur all costs necessary to facilitate commercialization of the patented invention.”35 The analysis of the market for inventions presented here encompasses the coordination and commercialization aspects of patents discussed by Kieff.