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joi, 27 ianuarie 2011

The Open Source Paradigm II


The customers for a particular open source product generally identify themselves: they search for the product in a directory of open source software, and then they download and test the software. If tests are successful, they deploy it. Thus they gain a continuing interest in the product. At that point if they desire additional features to the product, they have an incentive to become co-developers of the software they are using.

The companies that join open source collaborations are seeking to use the software in a non-differentiating, cost-center role. Their profit-centers are things other than software, and software is for them an enabling technology. In order to continue to operate their profit-centers, they must make some investment in their cost centers. In the case of differentiating software, they have little choice but to make use of the in-house or contract development paradigm, because they need to prevent their differentiators from falling into the hands of their competitors. For their non-differentiators, they have the choice of the retail or open source paradigms.

sâmbătă, 22 ianuarie 2011

Digital economy


Money management in the creative and conventional economies does not substantially differ. Thinking and creating are not free. Research represents a long and strenuous process of investment (time and money). The cost of operating a business with intellectual assets only is lower than the cost of starting a conventional business which uses both physical and intellectual assets. The former also has the advantage that it can delay paying for the intellectual assets, or pay them with equity. But the insubstantial nature of these assets deters would-be investors, and even those who have a stake in the business have problems in valuing it and their share. That is why patents, copyrights and trademarks have seldom been used as collateral for loans and, when they are, their value is underplayed.

One of the fields where more intellectual assets are used is the digital economy. With regard to the research in software industries, I shall further develop a separate chapter in which I shall describe the main types of innovation and the impact of open source.

marți, 18 ianuarie 2011

Copyright, patent, trademark and design

Copyright law covers an individual’s creative expression. It accrues automatically to any qualifying work and does not need to be registered. It normally lasts for the author’s lifetime plus seventy years. Patent law originated in the need to protect inventions of new industrial products and processes. It gives the inventor a monopoly in the making of the new product, typically for twenty years. Whereas copyright accrues automatically, a patent has to pass stringent tests before being approved. It must be novel, non-obvious and useful. None of these tests applies to copyright. Once registered, a patent gives stronger protection than does copyright. A trademark does not require any artistic or creative expression or any expert skill. It is a mark or symbol that represents an organization or trade. Trademarks are registered, they have to be actively traded and to pass tests of type and uniqueness. A design is a shape or symbol that, like a trademark, has the character of being distinctive and unusual. Legally, it is a hybrid. It often qualifies for copyright; it may also qualify for a special design right (as in Britain); and it is usually registered like a trademark.

These systems can overlap. An artist’s working sketch for a trade-mark qualifies as an artistic work and merits copyright protection quite separately from the trademark itself being registered as a trademark or a design. Computer programs which automatically qualify for copyright may in some countries also be awarded a patent.

The copyright industries consist of all industries that create copyright or related works as their primary product – advertising, computer software, design, photography, film, music (publishing, recording and performing), performing arts, publishing, radio and TV, and video games. The International Intellectual Property Alliance (IIPA) distinguishes between the “core” copyright industries and the total copyrights industries, which also include the manufacturing of products which depend upon copyright goods (computers, TV receivers).

The patent industries consist of all industries that produce or deal with patents. The dominant ones are the pharmaceuticals, electronics, information technology, industrial design, materials, chemicals, engineering, space and vehicles. The dominant activity is scientific research and development which is carried out by commercial companies, technical laboratories and universities. The US, Japan, Germany, France and UK are only some of the most prolific countries in this field. Patents registered by the US and UK Patent Office by country of applicant in 1999 can be found in the appendix section

The trademark and design industries are more widespread, and their size and diversity make them less distinctive. It is possible to identify the creativity involved in the creation of a trademark, but it is less easy to calculate its economic value or to identify the economic gains attributable to the trademark in the total product mix.

Together, these four industries constitute the creative industries and the creative economy. The creative economy consists of the transactions in these creative products. Each transaction may have two complementary values: the value of the intangible, intellectual property and the value of the physical career or platform. This creative economy covers a wide range of branches, and money made out of them reach significant figures. To have an idea, the market size of the creative economy in 1999 is depicted in the appendix section.

sâmbătă, 15 ianuarie 2011

Perspectives on creativity - part 1


Creativity is the process of challenging accepted ideas and ways of doing things in order to find new solutions or concepts. Being creative means seeing ideas in a different context either by recognizing their inherent potential to be used in a different way, or by putting previously unconnected ideas together to create something completely new. Everybody has the ability to be creative. Thus, creativity is anybody’s ability to generate something new. Creativity occurs whether or not this process leads anywhere.

Over the centuries, creative people have provided new solutions to the problems of their day. The ability of human beings to find creative solutions to problems is essential for the well-being of the human race. On a social level, collective creativity provides the opportunity to improve quality of life. In organizations, creativity is essential to ensure a firm’s ongoing effectiveness in a changing world. On a personal level, creativity can help you break out of routines you dislike.(1) People with ideas – people who own ideas – have become more powerful than people who work machines and, in many cases, more powerful than the people who own machines.(2)

Creativity is not necessarily an economic activity, because there are cases when the product of the creativity may not be put to practice or ever used. However, it is an economic activity the moment when the generated idea or solution has an economic value or when the new product is tradable. In this case, the result of creativity is a creative product. It can be defined as an economic good or service that results from creativity and has economic value


(1) BOULDEN, George P.,“Thinking Creatively”, Essential Managers, Dorling Kindersley Ltd., London 2002   p. 5
(2) HOWKINS, John, “The Creative Economy. How people make money from ides”, London Allen Lane, The Penguin Press, London, 2001, p. ix