Economics Quote by Michele Boldrin
““In the case of patentable ideas such as the wheelbarrow, the idea of unpriced spillovers is more plausible. Yet there is no reason to believe that it is of practical importance. Indeed, there is a modern example of the wheelbarrow – that of Travelpro – the inventor of the modern wheeled roll-on suitcase with a retractable handle. Obviously such an idea can not both be useful and be secret – and once you see a wheeled roll-on suitcase it is not difficult to figure out how to make one of your own. Needless to say, Travelpro was quickly imitated – and so quickly you probably have never even heard of Travelpro. Never-the-less – despite their inability to garner an intellectual monopoly over their invention – they found it worthwhile to innovate – and they still do a lucrative business today, claiming “425,000 Flight Crew Members Worldwide Choose Travelpro Luggage.””
About This Quote
Source Paper: The Economics of Innovation, 2015
Ideas that are easy to copy cannot be protected, yet firms can still profit by innovating and branding.
In simple terms: Copyable ideas still allow profit through innovation and branding.
Key Takeaway
Focus on continual improvement and brand reputation.
Themes
innovation
competition
intellectual property
branding
market dynamics
Mood
analytical
critical
informative
Type
economic
business
strategic
When to use this quote
- product design
- marketing strategy
- entrepreneurial ventures
Key Concepts
spillover effects
first-mover advantage
network externalities
Questions to Reflect On
- How can firms sustain advantage without patents?
- What role does brand loyalty play?
A Different Perspective
Copyable ideas may limit monopoly profits.
