Patent Policy in an Innovation Driven Economy: Schumpeter’s “Innovation Wave” Perspective
Patent Policy in an Innovation Driven Economy: Schumpeter’s “Innovation Wave” Perspective

Summary/Abstract: Purpose – This paper applies Schumpeter’s innovation theory approach to current patent policy. The theoretical analysis examines whether the patent policy harms the innovation level in the innovation driven economy. The aim of this paper is to answer the question: Is current patent policy stimulating or does it have a destructive impact on economic development driven by innovations? Design/methodology/approach – In this paper there is a discussion of how patent policy can influence the innovation level in an Innovation Driven Economy. The author has focused on a literature study and has presented a theoretical concept of the “Patent Wave Curve”. Findings – Part I of this paper discusses the role of patent policy in the economy and highlights policy concerns raised by the actions of certain entities. Part II concludes with a brief overview of Schumpeter’s innovation wave concept in the conditions of increased amounts of patent applications. The author therefore suggests that the economic and patent policy debate should change its attention toward finding significant ways of identifying innovation destructive behaviours, instead of eliminating certain business models. Originality/value – With reference to Schumpeter’s innovation theory the author presented in a paper the “Patent Wave Curve” concept. Having regard to Schumpeter’s creative destruction, patent racing theory, the current number of patent applications and patent policy problems (such as NPEs or PAEs activity) there is a point in the economy when without proper impulse it is pushed into an “innovation stagnation trap”.

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