Is there a market for ideas?
This article draws on recent work in market design to evaluate the conditions under which a market for ideas or technology (MfTs) will emerge and operate efficiently. As highlighted by Roth (<xref ref-type="bibr" rid="B70">2007</xref>), effective market design must ensure three basic principles: market thickness, lack of congestion, and market safety. Roth also highlights the importance of dealing with "repugnance." Our analysis identifies the factors that are, in most circumstances, likely to inhibit the allocative efficiency of MfT. We show that key institutional developments such as the development of formalized IP exchanges suggest that effective market design may be possible for some innovation markets. Finally, our analysis suggests that markets for ideas are beset by the "repugnance" problem: from the perspective of market design, Open Science is an institution that places normative value on "free" disclosure and so undermines the ability of ideas producers to earn market-based returns for producing even very valuable "pure" knowledge. Copyright 2010 The Author 2010. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
Year of publication: |
2010
|
---|---|
Authors: | Gans, Joshua S. ; Stern, Scott |
Published in: |
Industrial and Corporate Change. - Oxford University Press. - Vol. 19.2010, 3, p. 805-837
|
Publisher: |
Oxford University Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
When does start-up innovation spur the gale of creative destruction?
Gans, Joshua S., (2001)
-
Foundations of entrepreneurial strategy
Gans, Joshua S., (2019)
-
Urban productivity and factor growth in the late nineteenth century
Bostic, Raphael W., (1995)
- More ...