the role of patents in innovation and economic growth (1)

1. Economic growth and development are strongly influenced by technology and knowledge, according to recent history. Patents have evolved since the 15th century when they were first created to protect invention companies and encourage economic development. A limited-term exclusive right can allow inventors to recover their R&D costs and investments. Furthermore, it promotes investments that allow the general public to benefit from discoveries through commercialization and marketing. Through the publication of patent company and granted patents, the system disseminates knowledge and information to the public. Patent System The patent system needs to be set up in many countries, especially the least developing countries, to reap the benefits of economic growth and social development. As intellectual property becomes a valuable economic asset in the world economy, these countries need to develop their resources and infrastructure and increase their capacity to benefit from its development. Worldwide patent activity has risen dramatically in recent years as entrepreneurs have become increasingly concerned about protecting these intangible assets. ● There is often a gap between generally valid statements and monocausal causal relationships regarding patent protection, innovation, and economic growth. ● Scientific research has shown that innovations are growth drivers, especially in high- developed nations. Despite this, it is unclear exactly how patent protection stimulates economic growth.

2. Mostly, critics of the patent system cite the low level of transparency and the potential for hindering knowledge diffusion. As part of their opposition to patents, opponents will also emphasize the long application times that accompany patent grants, the insufficient harmonization of policies worldwide, and the high transaction costs that accompany it. Those who support patent protection emphasize the system's vital role in enabling market participants to capture the benefits of innovation. It also helps the patent company to give long-term invention idea to provide incentive structures for companies. There is often a gap between generally valid statements and monocausal causal relationships regarding selling a patent, innovation, and economic growth. The role of innovation in driving growth is now scientifically proven. Nevertheless, patent protection has not yet been able to clarify its role in stimulating economic growth. Mostly, critics of the patent system cite the low level of transparency and the potential for hindering knowledge diffusion. Those opposed to patents will also emphasize long application times for grants, a lack of global harmonization, and prohibitively high transaction costs. Those who support patent protection emphasize the system's vital role in enabling market participants to capture the benefits of innovation. They argue that patents provide incentives for companies to incur long-term innovation costs through research and development costs. Patent quality is usually overlooked in most analyses of patent data. Scientific literature increasingly criticizes this approach, since the quality of patents is more important than the number of them when calculating the economic value of patent data. In addition, different types of technology were seldom distinguished in the analyses. Artificial intelligence patents, for instance, are weighted the same as less relevant patents. In most cases, only patent application statistics are used. A patent application may take many years to be granted. Therefore, economic analysis is not simply based on how many patent applications a country has, but rather on its active patent portfolio. Conclusion Patents, as well as various forms of intellectual property, play a significant role in economic development and growth. Economic growth depends on patents and their applications. Many inventions remain secret or, in some cases, are published in scientific articles, so patents do not necessarily represent all technical know-how produced. Technology, knowledge, and patents are in a circular relationship: knowledge transforms into technology, and technology transforms

3. into a patent, which becomes a source for more knowledge to feed technology and so forth. Innovation is therefore driven by patents. Incentives for investment in R&D can be obtained through the use of patents if they are used wisely. As patents increase, innovations increase as well. Innovation is promoted by patents, which are vectors of economic growth.