Two economists at the St. Louis Federal Reserve published a paper arguing to abolish the American patent system, saying there's "no evidence" patents improve productivity and that they have a "negative" effect on "innovation."
Patents are designed to encourage innovation by granting inventors long-term monopolies on new products. In recent years, however, several innovators in high-tech sectors have complained that the large volume of vague patents has become a major barrier to innovation. When start-ups attempt to unveil a new product, they risk violating a broad, obscure patent.
"Our preferred policy solution is to abolish patents entirely," the paper's authors, economists Michele Boldrin and David K. Levine, wrote. They conclude that problems with patents in fact run much deeper than many critics of the recent system have emphasized.
"The historical and international evidence suggests that while weak patent systems may mildly increase innovation with limited side effects, strong patent systems retard innovation with many negative side effects," Boldrin and Levine wrote. "More generally, the initial eruption of innovations leading to the creation of a new industry—from chemicals to cars, from radio and television to personal computers and investment banking—is seldom, if ever, born out of patent protection and is instead the fruit of a competitive environment."