Notes

Notes

CHAPTER 1.

CHAPTER 1. Introduction,: A Moment of Opportunity and Challenge

1. Barry Wellman et al., “The Social Affordances of the Internet for Networked Individualism,” JCMC 8, no. 3 (April 2003).
2. Langdon Winner, ed., “Do Artifacts Have Politics?” in The Whale and The Reactor: A Search for Limits in an Age of High Technology (Chicago: University of Chicago Press, 1986), 19–39.
3. Harold Innis, The Bias of Communication (Toronto: University of Toronto Press, 1951). Innis too is often lumped with McLuhan and Walter Ong as a technological determinist. His work was, however, one of a political economist, and he emphasized the relationship between technology and economic and social organization, much more than the deterministic operation of technology on human cognition and capability.
4. Lawrence Lessig, Code and Other Laws of Cyberspace (New York: Basic Books, 1999).
5. Manuel Castells, The Rise of Networked Society (Cambridge, MA, and Oxford: Blackwell Publishers, 1996).

PART I. The Networked Information Economy

1. Elizabeth Eisenstein, Printing Press as an Agent of Change (Cambridge: Cambridge University Press, 1979).

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476 Notes to Pages 36–46

CHAPTER 2.

CHAPTER 2. Some Basic Economics of Information Production and Innovation

1. The full statement was: “[A]ny information obtained, say a new method of production, should, from the welfare point of view, be available free of charge (apart from the costs of transmitting information). This insures optimal utilization of the information but of course provides no incentive for investment in research. In a free enterprise economy, inventive activity is supported by using the invention to create property rights; precisely to the extent that it is successful, there is an underutilization of information.” Kenneth Arrow, “Economic Welfare and the Allocation of Resources for Invention,” in Rate and Direction of Inventive Activity: Economic and Social Factors, ed. Richard R. Nelson (Princeton, NJ: Princeton University Press, 1962), 616–617.

2. Suzanne Scotchmer, “Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,” Journal of Economic Perspectives 5 (1991): 29–41.

3. Eldred v. Ashcroft, 537 U.S. 186 (2003).

4. Adam Jaffe, “The U.S. Patent System in Transition: Policy Innovation and the Innovation Process,” Research Policy 29 (2000): 531.

5. Josh Lerner, “Patent Protection and Innovation Over 150 Years” (working paper no. 8977, National Bureau of Economic Research, Cambridge, MA, 2002).

6. At most, a “hot news” exception on the model of International News Service v. Associated Press, 248 U.S. 215 (1918), might be required. Even that, however, would only be applicable to online editions that are for pay. In paper, habits of reading, accreditation of the original paper, and first-to-market advantages of even a few hours would be enough. Online, where the first-to-market advantage could shrink to seconds, “hot news” protection may be worthwhile. However, almost all papers are available for free and rely solely on advertising. The benefits of reading a copied version are, at that point, practically insignificant to the reader.

7. Wesley Cohen, R. Nelson, and J. Walsh, “Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)” (working paper no. 7552, National Bureau Economic Research, Cambridge, MA, 2000); Richard Levin et al., “Appropriating the Returns from Industrial Research and Development” Brookings Papers on Economic Activity 3 (1987): 783; Mansfield et al., “Imitation Costs and Patents: An Empirical Study,” The Economic Journal 91 (1981): 907.

8. In the 2002 Economic Census, compare NAICS categories 5415 (computer systems and related services) to NAICS 5112 (software publishing). Between the 1997 Economic Census and the 2002 census, this ratio remained stable, at about 36 percent in 1997 and 37 percent in 2002. See 2002 Economic Census, “Industry Series, Information, Software Publishers, and Computer Systems, Design and Related Services” (Washington, DC: U.S. Census Bureau, 2004).

9. Levin et al., “Appropriating the Returns,” 794–796 (secrecy, lead time, and learningcurve advantages regarded as more effective than patents by most firms). See also F. M. Scherer, “Learning by Doing and International Trade in Semiconductors” (faculty research working paper series R94-13, John F. Kennedy School of Government, Harvard University, Cambridge, MA, 1994), an empirical study of semiconductor industry suggesting that for industries with steep learning curves, investment in information production is driven by advantages of being first down the learning curve