Lecture
This lecture covers the concept of appropriability in innovation, focusing on the innovator's desire to set a price higher than the cost by ensuring exclusivity and translating it into profit. It discusses strategies for intelligent specialization, including examples of instant versus long-term appropriability. The lecture delves into historical cases like Gutenberg, Bayer, and Moderna to illustrate imperfect appropriability scenarios. It also explores the impact of patent systems on innovation pricing, the challenges faced by startups lacking production capabilities, and the complexities of patent thickets in hindering innovation. The importance of patenting, generic competition, and the ethical considerations surrounding pharmaceutical innovation are also addressed.