Intellectual Property Statistics: Measuring Framework for Standards and Trade in Ideas (Contributions to Economics)

✍ Scribed by Eskil Ullberg

• Publisher: Springer
• Year: 2023
• Tongue: English
• Leaves: 194
• Edition: 1st ed. 2023
• Category: Library

✦ Synopsis

Patents and other intellectual property (IP) rights are increasingly part of cross-border trade in their own rights. Patent transfers and patent licensing between inventors, investors and innovators create new business strategies of cooperation in the creation of new technology – increasing the productivity in the stock of technology assets – and efficient “distribution” of these rights. The rights bundles are then used – also increasingly – in products and services being traded cross-border, furthering economic efficiency created by this cooperative strategy. Today’s international trade statistics, however, lack statistics explicitly on trade flows from ideas, based on IP rights. This book offers an idea based statistical framework to measure IP, (i.e., increasingly depends on trade in ideas) and explores ways to introduce the framework into international standards. Specifically, it offers a theory of value to measure the flows from IP and an asset view of IP to deal with allocation of resources and who owns these rights. This is then contrasted with the current way IP is treated and a “gap analysis” is used to identify what needs to change in the standards. This new framework can help develop theories, policies, practices and inform the decisions needed to better leverage the human capital formation of inventors everywhere.

Praise for Intellectual Property Statistics…

“In this book, Prof. Ullberg has undertaken a Herculean task – to lay out a paradigm for the collection of IP Statistics to ensure that the … market of trade in ideas has the information and data necessary to function well.

[the] volume should be viewed as a starting point, a work in progress, but an important one that could very well influence the development of this important set of data on trade in ideas.

At a time when global issues … require both new ideas and the spread of those ideas widely to help ensure both economic growth and continued global economic convergence data that helps us monitor and evaluate what is happening in trade in ideas will be extremely valuable.”

– Robert Koopman, American University, Washington, DC, USA and

Former Chief Economist, World Trade Organization, Geneva, Switzerland

✦ Table of Contents

Foreword
Preface
Acknowledgments
Contents
List of Figures
List of Tables
About the Author
Part I: A New Theory of Value and the Need for a New Measuring Framework for Standards and Trade in Ideas
Chapter 1: Introduction
1.1 The Economic System
1.2 The Integration of Science and Technology
1.3 A Culture of Creativity
1.4 Trade in Ideas - The World Market in Patents and IP
1.4.1 The Institutional Environment
1.4.2 The Economic Environment and Business Strategy
1.4.3 The New Economic System
1.4.4 Summary of Trade in Ideas and What Data Is Needed
1.5 Measuring the Contribution of Trade in Ideas, an Overview
1.6 The Theory of Value Summary
1.7 The Need for a New Framework for Standards and Trade in Ideas
Chapter 2: Theory of Value
2.1 Introduction to the Dynamic Economic System of Trade in Ideas
2.1.1 Upgrading Trade Theory to Patents
2.1.2 The Key Economic Question Is Sociological
2.1.2.1 The Genuine Uncertainty in the Value of Patents
2.1.3 The Management of Risk and Uncertainty and How to Measure It
2.1.3.1 Uncertainty Currently Not Incorporated in the Economic Models
2.1.3.2 The Social Process of Managing Inventions
2.1.3.3 Patents as Production Assets Establish Strategies
2.1.4 Theory of Value of a Dynamic Economic System with Uncertain Assets
2.1.4.1 The Theory of Value Summarized
2.1.5 An Empirical Model of Value Based on the Strategies Firms Use to Solve the Uncertainty Problem
2.2 The Strategies Outlined
2.2.1 The Strategies Which Resolve Uncertainty
2.2.1.1 The Strategies of Mutually Assured Self-Restraint (MUST´´) 2.2.2 Reward Structure by Strategy 2.2.3 The User´s Values and Two-Tiered Prices 2.2.4 A Socially-Strategic Equilibrium 2.2.5 Non-satiation Postulate for Uncertain Values 2.2.6 Investment Strategy and Maximizing Value 2.2.7 Industrial Organization 2.2.8 Concentration of Capital 2.2.9 Integration of Science and Technology 2.3 The Institutions 2.3.1 Institutional Performance and Strategy 2.3.2 Price Equals Value 2.4 List of Variables in the Empirical Model and Their Meaning 2.4.1 Economic Environment 2.4.2 Institutional Environment 2.4.3 Data to Be Collected 2.5 Measures of Outcome and Outcome Behavior PartPart20005648558 Chapter 3: Today´s Balance of Payment Statistics and Data Gap 3.1 The Statistical Frameworks and Data Available Today 3.2 National Statistics: The Treatment of Embedded IP Today 3.2.1 Current Focus on is on Embedded IP 3.2.2 Globalization Requires Broader Institutional Scope 3.3 Concepts Pertaining to IP-Related International Transactions and Current Data Availability 3.3.1 The Economic Statistics Related on IP Today 3.3.2 The Classification of IP-Related Transactions Today 3.4 Measurement Challenges in GVCs 3.4.1 Recording in Practice 3.4.2 Lack of Practical Recommendations for Compilation 3.4.3 Residual Ownership and Standardized Methods 3.4.4 Special Purpose Entities and Proposals 3.5 Characteristics of IP Traders asMerchanting of Services´´
3.5.1 Network Cooperation and e-Commerce
3.6 Conclusions
3.7 The Gap in Data to Measure a More Dynamic Economic System
3.7.1 The Data Gap in Statistics
3.7.2 A Change in Structure Needed
Chapter 4: Today´s Financial Accounting Standards and Data Gap
4.1 A New Challenge for Management
4.2 The Accounting Frameworks and Data Available Today
4.2.1 Income Statement: The Principles for Recognition of Revenues
4.2.1.1 A Lack of Dynamism
4.2.1.2 Current Principles for Treatment of Revenues from Licensing of IP
4.2.1.3 A Distinct License
4.2.1.4 The Payment Terms Are Separate
4.2.1.5 Not Distinct Licenses
4.2.1.6 IP as Assets Necessary to Reflect Both Risk and Uncertainty
4.2.2 Assets and Liabilities: The Criteria for Recognition and Measuring the Intangible Assets
4.2.2.1 The Treatment of IP Assets in Financial Accounting Standards
4.2.2.2 The Sale and Purchase or Exchange of Intangible Assets
4.2.2.2.1 Intangible Assets
4.2.2.2.2 Embedded IP
4.2.2.2.3 Intangible Assets or Inventory
4.2.2.2.4 Revaluation of IP Assets
4.2.2.2.5 Measurement of Acquired Assets and Liabilities
4.2.2.2.6 Mergers and Acquisitions
4.2.2.2.7 Exchange of Intangible Assets
4.2.2.2.8 Fair Value of Intangible Assets
4.2.2.3 The Recognition of Cost of Acquired Intangible Assets
4.2.2.4 The Recognition of Internally Generated Intangible Assets
4.2.2.4.1 The Research Phase
4.2.2.4.2 The Development Phase
4.2.2.4.3 Goodwill
4.2.2.4.4 Recognition as an Expense
4.2.2.4.5 Writing off IP
4.2.2.4.6 In-Process Research and Development
4.2.2.4.7 Traditional Knowledge as Assets
4.2.2.4.8 Disclosure
4.2.3 Examples of Accounting Practices Today
4.2.3.1 Qualcomm
4.2.3.2 Ericsson
4.2.4 The Need for a New Accounting Definition of ``Product´´
4.2.5 The Need for New Accounting Tools
4.2.6 Patent (IP) Assets and Liabilities on the Balance Sheet
4.2.7 Summary of Recognition of IP Assets
4.2.8 Summary of Recognition of Revenues from IP and of IP Assets
4.3 The Data Gap Compared to the Proposed Theory of Value
4.3.1 The Provenance of Revenues - New Definition of Revenue Types
4.3.2 A New Structure to Measure the Return on IP Assets
PartPart30005648559
Chapter 5: Overview of the Framework
5.1 The Economic Environment
5.1.1 IP Revenues and their IP Asset Provenance
5.1.2 IP Assets and Liabilities
5.1.2.1 Contracts as Assets and Liabilities
5.1.2.2 Incomplete Contracts and Residual Rights
5.1.3 Strategies
5.1.3.1 Messages of Negotiating a Strategy and Contracts
5.1.3.1.1 Strategic Response Messages
5.1.3.1.2 Contract Negotiation Messages
5.1.3.2 Identification of Strategies and Management Performance
5.1.3.3 A Note on Licensing Strategies in Practice
5.2 Institutions and Contracts
5.2.1 Institutional Rules of Trade
5.2.2 Contracts
5.2.3 Regional and World Prices
5.2.4 Payments
5.3 Dynamic Economic Value Through Trade in Ideas
5.3.1 Value from Trade in Ideas (Outcome)
5.3.2 Measures and Index
5.3.2.1 Measures
5.3.2.2 Index
5.4 Data to Collect on the Economic System
5.5 Scope of Data for Statistics
5.5.1 The Statistical Unit and Data on the Economic System
5.5.1.1 Agents
5.5.1.2 Agent Characteristics
5.5.1.3 Idea Products
5.5.1.4 Strategy
5.5.1.5 Institutions
5.5.1.6 Contract
5.6 Standards for Data Collection
Chapter 6: Description of the Collection and Compilation of Data for Each Element
6.1 Changes in Principles and in Data Collection Structure
6.1.1 Principles
6.1.1.1 Trade Is First of All in Ideas
6.1.1.2 Patents (IP) are Considered Production Assets
6.1.1.3 Legal Entities as Statistical Units
6.1.2 Structural Changes
6.1.2.1 Revenue Recognition (IFRS15 Related)
6.1.2.2 Recognition of Assets and Liabilities (IAS38 Related)
6.1.2.3 Current Account (BPM6-7 Related)
6.1.2.4 International Patent Position Statement (New)
6.2 New Data to Be Collected
6.2.1 Price Data Collected from Contracts
6.2.1.1 Contracts
6.2.1.2 Cultural Norms
6.2.1.3 Payments
6.2.2 Strategy
6.2.3 Institutions
6.2.4 Summary Table of Data Collection
6.2.5 Statistical and Financial Accounts
6.3 Summary of Proposed New Measures
6.4 A Trade in Ideas Index
Part IV: A Proof of Concept
Chapter 7: A Proof-of-Concept Study in Perú
7.1 A Developing Country Study in Perú
7.2 The Design in Cooperation with INDECOPI
7.3 Selection of Inventor Firms
7.4 The Survey Structure
7.4.1 The Operation of the Economic System in a Developing Country
7.4.2 The Survey
7.5 The Results
7.5.1 The Economic Environment
7.5.1.1 The Inventor´s Economic Environment
7.5.1.2 Management of Inventions
7.5.1.3 The Legal Entity Used to Hold Patents
7.5.1.4 The Human Capital Formation
7.5.1.5 The Team-Based, Highly Educated Generation
7.5.1.6 Competence in IP
7.5.1.7 The Patent Portfolio Growth
7.5.1.8 The Strategies
7.5.2 The Institutional Environment
7.5.2.1 The Contract Types
7.5.3 Additional Data Needed for Statistical Purposes
7.5.4 The Outcome Measures
7.6 Accounting Principles and Practices
7.6.1 Accounting Principles and Standards
7.6.2 Accounting Practices
7.6.2.1 Revenues
7.6.2.2 Cost
7.6.2.3 Assets and Liabilities
7.6.2.4 Funding
7.7 What Can We Learn from the POC?
Chapter 8: Can Data be Collected in a Developing Nation?
8.1 An International Effort of Sovereign Nation States
8.2 The Data Needs and Standardization Needs
8.3 An International Discussion Needed
8.4 The Primary Tools
Part V: Implementing the Framework
Chapter 9: Future Steps Toward New Standards and Statistics
9.1 The Way Forward - BPM7, IFRS15, IAS38, and Standardization Bodies
9.2 Process for Adjusting the Standards
Bibliography
Author Index
Subject Index