Patents

Introduction

It is tempting to see the debate about the relevance of patents for supporting innovation as a contemporary, updated version of the tongue anecdote from Aesop, the famous ancient Greek fabulist who was also a slave. When his master asked him to go to market to buy the choicest dainties to honor some special guests, Aesop only bought tongues, which he served with different sauces. When his master questioned his choice, Aesop responded, “There is nothing better than the tongue, the connection to civil life, the key to science, the organ of truth, reason and prayer. Through it, we build cities and govern them, we teach, we persuade, we hold assemblies, and we carry out the most important of all work, which is to praise the gods”. Offended by this answer, Xanthos, Aesop’s master, asked him to choose the worst meal for the same guests to try the next night. Again, Aesop bought only tongues, and served them with different sauces. To his puzzled master, he responded: “There is nothing worse than the tongue, the mother of all disputes, the source of all conflict and wars, the organ of error and slander, blasphemy and impiety. Through it, we destroy cities, we convince people of evil things, and we utter blasphemy about the power of the gods”¹.

Patents are at least as ambivalent as Aesop characterizes the tongue. This ambivalence has long been recognized. When concluding his report for the U.S. Senate about patents, Machlup [MAC 58, pp. 79–80] wrote: “No economist, on the ...