Innovation and invention have been key factors in the economic progress of businesses and countries and the reason behind why our world changes so radically around us. Inventors see a connection between two things which others couldn’t and give their competitors some hard as they just try to play catch up.
Rounded windows in aircrafts allowed Boeing and the American aircraft industry to take over from the british. The comet aircraft manufactured in Britain had square windows which at high altitudes would explode as a result of stresses in the corners and people stopped traveling until Boeing came up with rounded windows which had better structural integrity and now the USA dominates the aerospace industry. This innovation from Boeing has put them ahead of the game for over 60 years. It also put british airplane manufactures out of business caused by the many Comet disasters.
Innovation here meant we could fly from one place on this planet to any other place on this planet in under 24 hours safely and has improved our lifestyle greatly. The economic advantages are not just restricted to the manufacturers of these aircrafts but the entire world as businesses today are so reliant on the aircraft industry in today’s global economy.
The profitability of these ideas mean companies want to take ownership of these ideas in order to be the sole recipients of the profits and is easy to register with patent ownership. Unfortunately it isn’t that simple, as the patent ownership system is too antiquated for present day business. The weaknesses were best demonstrated in the Apple vs Samsung lawsuit as Apple owns the patent of a rectangular smartphone with rounded edges which is outrageous. This hurts the consumers and therefor the economy as competition disappears due to the restrictiveness of these ownership laws. It also restricts new ideas which build on the existence of older ideas. The cost of applying for a patent is currently $30,000 which means the idea of somebody poor to come up with an idea and change his life is less likely than before. S/he would have to get investors in order to apply for the patent and s/he would have to negotiate percentages with the investors for his/her idea. Some consider this unfair to the poor.
Hi Danial
ReplyDeleteA really interesting case study where I have learnt about an aspect of the aviation industry that I was not at all aware of!
Good analysis of the reasons behind company's wanting to have sole ownership of product innovations. What is the difference between a patent and a trademark?
Patents are inventions, processes and idea which are protected by law; it is closely related to the product itself while trademarks are closely related to marketing. A company would trademark their logo,slogan and advertising campaign.
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