[MTC Global] The Mother Of All Innovation Challenges

Author: Marshall Phelps , CONTRIBUTOR

Source: Forbes

 

Eighteen months ago, the Supreme Court issued a decision in Alice v. CLS Bank that limited the kinds of software and business methods that can be patented. Few suspected this ruling would have such a profound impact not only on patent enforcement but on American innovation itself.

 

For what Alice did was make the highest-value new innovations in technology and service models that are increasingly driving margins today — cloud services, big data, machine learning, connectivity, mobility and location-based services, everything on-demand and anything-as-a-service — also the most difficult to patent.

Patents mean higher-margins and market share — for high-value innovations, an average of 50% higher, says a study from Carnegie Mellon University, Duke University, and Georgia Institute of Technology entitled “R&D and the Patent Premium.” So the risk of not being able to patent a breakthrough product or service is a very big deal to companies.

Innovating new products and services is hard enough already. Only two of the top 20 corporate R&D spenders made it onto PwC’s “Most Innovative” list in 2014, after all, and half of all firms say they are only “marginally effective” at idea generation and idea conversion.

But Alice? It’s the mother of all innovation challenges.

People in my business call this the “Alice Paradox.” And my colleague, ipCreate President Peter Holden, has come up with a way to visualize it.

The new forms of innovation driving the value of products today are also the most difficult to patent.

 

 

Best Regards,

Educate, Empower, Elevate

Prof. Bholanath Dutta

Founder, Convener & President- MTC Global

An Apex Global Advisory Body in Management Education

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