Innovative Intellectual Property Rights for a Knowledge Economy: Openness and Flexibility not Strength

IP systems need to be more flexible for communities, business and research, rather than stronger. Holding on to an out-dated industrial model of IP rather than to a knowledge-based model is inadvisable because communication underpins knowledge-based economies; we must assess the IP system in terms of its effects on communication in knowledge creation and diffusion processes. Traditionally, IP rights design aims to distort communication processes that underpin knowledge economies and therefore may have negative effects on knowledge and innovation. In a knowledge economy one must protect the communicability of important ideas and traditional IP takes ideas out of communication channels. Knowledge economies are animated by communication. In this respect, it is accurate to say that knowledge-based economies are communication economies. All knowledge-related policy, including IP policy, should be cognisant of this fundamental point. A central innovation and IP policy question should therefore be about what effects the IP system has on knowledge communication.

In light of the communication view of knowledge systems it is worth noting that contemporary approaches to knowledge production and discovery routinely depend on cross-disciplinary and interdisciplinary practices and collaboration. These practices are effective because they address the basic communication dynamics of knowledge systems. Many of the communication structures and processes that have evolved in traditional universities and more recently in business are core to innovation, knowledge discovery, and knowledge diffusion. This is not to say that all recent changes in knowledge system workings are welcome. In particular, the intellectual closure of university and other research through aggressive assertion of stronger IP rights is often problematic, and precipitates failure at the level of communication.

Looking beyond university research to industrial Research and Development (R&D) generally, it is important to note that IP necessarily also stifles commercial knowledge communication in significant ways. Publication, though, in extinguishing IP rights, encourages wider use of scientific knowledge in the economy. Intellectual property rights therefore occupy an awkward and sometimes unhelpful position in the dynamics of knowledge-based economies. Inflexible traditional IP rights regimes can obstruct effective interdisciplinary and collaborative R&D processes increasingly used in industry. From a knowledge and communication point of view, stronger IP introduces frictions, inefficiencies, and distortions into knowledge and innovation systems. Countries need to calculate the relative macro and micro economic costs and benefits of open versus closed innovation and more or less open (and flexible) versus closed (and stronger) IP rights regimes.

By adopting a knowledge policy theory perspective to guide IP reform, there is an opportunity to be an IP policy leader by bringing important innovations to the IP system. IP reform can make a knowledge economy more flexible, resilient and competitive. 


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