Efforts At Collaboration Without Open Source Licensing

Consortia used to be the standard means of collaborating between companies upon software development. Closed consortium software (gated communities) has a record of titanic failures (Taligent and Monterey intended to create a replacement for Unix, but Linux replaced them) and it is the wrong structure for the development of non-differentiating software. A consortium costs more because there are fewer members to share cost and risk than with an open source project and more structure and overhead as well.

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.

Creative workers

However, creative workers can start up their own business at any moment. What they need to possess are: vision, focus (on one thing only), financial skills, pride and urgency (doing things at the right moment). The work of a creative person may be intermittent and volatile, but someone who creates their own intellectual property and manages their own work can be more secure than a salaried employee of a large corporation.

In the creative economy, people start their own companies, process which entails a decrease in traditional full employment. The post-industrial society needs the post-employment job. Employment will only include just-in-time persons (people who are hired only when and where they are needed) with specific expertise and the ability to insert into the team. Gerard Fairtlough, the former chief executive of Celltech, believes the ideal size of a team is seventy, which he calls a creative compartment. This team should be dynamic, so as to encourage leaders.(1)

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(1) HOWKINS, John, “The Creative Economy. How people make money from ides”, London Allen Lane, The Penguin Press, London, 2001, p. 150

The Recognition, Protection and Classification of Creative Products - Part 2

The case for intellectual property in economic theory notes certain substantial differences from the case for tangible property. Consumption of tangible property is rivalrous. For example, once one person eats an apple, no one else can eat it; if one person uses a plot of land on which to build a home, that plot is unavailable for use by others. Without the right to exclude others from tangible resources, a tragedy of the commons can result. The subjects of intellectual property do not share this feature of rivalness. For example, an indefinite number of copies can be made of a book without interfering with the use of the book by owners of other copies. When combined with a lack of exclusive intellectual property rights, this nonrivalrousness and nonexcludability combine to make them public goods and susceptible to the free rider problem. A rationale for intellectual property therefore rests on incentive effects to overcome the free rider problem. This case asserts that without a subsidy that is afforded by exclusive rights, there is no direct financial incentive to create new inventions or works of authorship.

As Wikipedia and free software demonstrate, works of authorship can be written without direct financial incentives. Moreover, many important works were created before copyright was invented. One might argue that much more invention occurred after patents came into existence; however, one could also argue that patents were brought into law as the power and influence of industrial interests grew. The status of intellectual property is disputed by various commentators in India, China and other developing nations. The United States and the United Kingdom are the only two nations who consistently receive net balance of payment benefits from intellectual property, and are amongst the chief supporters of intellectual property systems.

Perspectives on creativity - part 2

Innovation, which can mean a new idea, method or invention used in order to improve the current activity or the introduction of new ideas or methods(1), is a concept closely related to creativity. Innovation has become a lot more important to corporate leaders, in the last decade in particular, because of changes in the business environment, brought on by increased technological capabilities, speed, hyper competition, and faster rates of diffusion enabled by greater connectivity. The second part of my paper refers – inter alia – to innovation opportunities. But while many companies say they are making innovation happen, for most of them innovation is based on old ideas, principles and processes. At best, their innovations are incremental-miniscule improvements in products and services. While there is nothing wrong in achieving small gains, this view of innovation shuts out the truly startling cases of leap innovations.

Leap innovations occur when someone discovers an entirely new approach to a problem, an approach that changes life in some significant way. The leap innovation emphasizes the act of moving into the unknown or unexplored rather than just breaking with predictable patterns of innovation.(2)

Creativity and innovation are present at all levels of business from the management of a company to the development, branding and shape of each product.(3) Companies change at a great speed, due to the fact that competition is increasing and they have to maintain their position on the market. The fruits of creativity are what make them more appealing to their clients and partners. Briefly, their future and profitability largely depend on how creative they are.

Despite the fact that arts and creativity are allegedly treated as one and the same concept, not only pieces of art are the result of creative work. Creativity is also present in all other fields, such as sciences (especially in research and development). Both arts and sciences use the same thinking and creating processes, but the difference consists in the reasons why they do so. Also, the way how they protect its economic value differs. So, creativity is common to both arts and sciences, the creative products are different.

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(1) “Dictionary of Contemporary English – The Complete Guide to Written and Spoken English”, Longman 1999

(2) WHITE, Shira P.  with WRIGHT, G.  Patton, “New Ideas About New Ideas”, Pretince Hall, Financial Times, London 2002, p. 8

(3) HOWKINS, John, “The Creative Economy. How people make money from ides”, London Allen Lane, The Penguin Press, London, 2001, p. xi