patent-granting

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patent-granting

by gmat_perfect » Mon Sep 06, 2010 12:05 pm
The system of patent-granting, which confers temporary monopolies for the exploitation of new technologies, was originally established as an incentive to the pursuit of risky new ideas. Yet studies of the most patent-conscious business of all-the semiconductor industry-suggest that firms do not necessarily become more innovative as they increase their patenting activity. Ziedonis and Hall, for example, found that investment in research and development (a reasonable proxy for innovation) did not substantially increase between 1982 and 1992, the industry's most feverish period of patenting. Instead, semiconductor firms simply squeezed more patents out of existing research and development expenditures. Moreover, Ziedonis and Hall found that as patenting activity at semiconductor firms increased in the 1980's, the consensus among industry employees was that the average quality of their firms' patents declined. Though patent quality is a difficult notion to measure, the number of times a patent is cited in the technical literature is a reasonable yardstick, and citations per semiconductor patent did decline during the 1980's. This decline in quality may be related to changes in the way semiconductor firms managed their patenting process: rather than patenting to win exclusive rights to a valuable new technology, patents were filed more for strategic purposes, to be used as bargaining chips to ward off infringement suites or as a means to block competitors' products.

Question:


The passage is primarily concerned with discussing

A. a study suggesting that the semiconductor industry's approach to patenting during the period from 1982 to 1992 yielded unanticipated results
B. a study of the semiconductor industry during the period from 1982 to 1992 that advocates certain changes in the industry's management of the patenting process
C. the connection between patenting and innovation in the semiconductor industry during the period from 1982 to 1992
D. reasons that investment in research and development in the semiconductor industry did not increase significantly during the period from 1982 to 1992
E. certain factors that made the period from 1982 to 1992 a time of intense patenting activity in the semiconductor industry

[spoiler]OA: A[/spoiler]

IMO: D

What is the exact deal with this rc?

Thanks.

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by selango » Tue Sep 07, 2010 7:38 am
The paragraph can be rephrased as following,


1.First system of patent granting is described.

2.studies of patent granting in semiconductor industry is introduced.

3.Innovation Vs patent activity and decrease in investment in R&D.

4.Decline in patent quality.

5.Semiconductor approach of patent activity and the reason for patent quality.

Note that the author mentioned the decrease the investment in R&D to demonstrate the relation bw innovation & patent activity.Does the author provides any reason for this decrease?No.

The author goes on to state the reasons why there is decline in patent activity due to the approach by semiconductor's industry.

as patenting activity at semiconductor firms increased in the 1980's, the consensus among industry employees was that the average quality of their firms' patents declined.
this decline in quality may be related to changes in the way semiconductor firms managed their patenting process:

Option A is correct.
--Anand--

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by loveusonu » Tue Sep 07, 2010 8:00 am
These first few lines of passage suggests that patient-granting was orignally established as an incentive to pursuit risky ideas. Howvever studies show that this is not necessarily becoming true.
The rest of the passage gives 2 examples of that reason for which patient-granting was established is not coming true i.e. unintented results.
Scope: all studies and examples is for period 1982-1992

A: exactly states this.

D: Incorrect due to keyword "Investement", which is never discussed.

hope that helps.

Also please use spoiler and post all questions, would be helpful for us too.
Sonu
--------
When you want something desperately, the whole Universe conspires in helping to give it to you - The Alchemist

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by paddle_sweep » Tue Sep 07, 2010 8:40 pm