> I wonder if there isn't some sort of governance solution to this. Like give companies big tax breaks for sharing their data with researchers, or something like that. Essentially subsidize academia indirectly.
I think that's a really great idea. Not sure how many would take advantage of it but if it could be made to work then it would be really awesome.
It would also be extremely prone to abuse, though. Patenting is already an art of pretending to explain in clear terms what you are doing, while actually describing something as broadly and vaguely as possible. It would be pretty easy for a TON of things to leave out some key things that make it impossible or unhelpful to have the information.
You could form industry-specific regulations or even an active agency to prosecute abuses like that, but it would be immediately overwhelmed. The patent office is already heavily gamed by patent trolls, who bank on long odds for small judgements. Now imagine if millions or billions of dollars of taxes were on the line, and major companies were investing significant resources to open source while protecting their IP.
Even if that were all figured out, how would you value open sourcing stuff, even something as simple as data? Do you give breaks by size, importance, proportion of profit or future profit? Cost of the research? How do you guard against overvaluations and abuse of accounting? Even if you had perfectly accurate, annually-updated solutions for all that, companies can still game the system. Lyft has decided this dataset is what they need; if they could get a bigger break by collecting more data, they'd do that. Plus- facebook and google release tons of open source stuff. Do they deserve more than say, pharmaceutical research?[1]
Similar (IIRC Nixon) tax breaks already exist for R&D, and they are a notoriously abused loophole. Simplified but illustrative example: you build your R&D lab in the shape of a factory, do your research for a while and then suddenly scale back and replace it with machinery- well, the original building was still deducted from taxes.
Pharma is actually a perfect example. It's a well known fact that R&D only accounts for 22% of pharma industry revenue (almost equal to advertising at 19%), but only ~30% of that actually goes to new drugs. The rest takes advantage of marketing and the patent system to re-release drugs that are essentially the same. Two thirds of their research is obvious changes that are only protected because they owned the original patent- those shouldn't be getting the benefit of incentives.
I think that's a really great idea. Not sure how many would take advantage of it but if it could be made to work then it would be really awesome.
It would also be extremely prone to abuse, though. Patenting is already an art of pretending to explain in clear terms what you are doing, while actually describing something as broadly and vaguely as possible. It would be pretty easy for a TON of things to leave out some key things that make it impossible or unhelpful to have the information.
You could form industry-specific regulations or even an active agency to prosecute abuses like that, but it would be immediately overwhelmed. The patent office is already heavily gamed by patent trolls, who bank on long odds for small judgements. Now imagine if millions or billions of dollars of taxes were on the line, and major companies were investing significant resources to open source while protecting their IP.
Even if that were all figured out, how would you value open sourcing stuff, even something as simple as data? Do you give breaks by size, importance, proportion of profit or future profit? Cost of the research? How do you guard against overvaluations and abuse of accounting? Even if you had perfectly accurate, annually-updated solutions for all that, companies can still game the system. Lyft has decided this dataset is what they need; if they could get a bigger break by collecting more data, they'd do that. Plus- facebook and google release tons of open source stuff. Do they deserve more than say, pharmaceutical research?[1]
Similar (IIRC Nixon) tax breaks already exist for R&D, and they are a notoriously abused loophole. Simplified but illustrative example: you build your R&D lab in the shape of a factory, do your research for a while and then suddenly scale back and replace it with machinery- well, the original building was still deducted from taxes.
Pharma is actually a perfect example. It's a well known fact that R&D only accounts for 22% of pharma industry revenue (almost equal to advertising at 19%), but only ~30% of that actually goes to new drugs. The rest takes advantage of marketing and the patent system to re-release drugs that are essentially the same. Two thirds of their research is obvious changes that are only protected because they owned the original patent- those shouldn't be getting the benefit of incentives.