I want to tell you the story of the Land of Lincoln so I’m not gonna tell you
of Lincoln so I’m not gonna tell you
of Lincoln so I’m not gonna tell you about this guy I’m not gonna talk about
about this guy I’m not gonna talk about
about this guy I’m not gonna talk about Illinois I’m going to talk about Thomas
Illinois I’m going to talk about Thomas
Illinois I’m going to talk about Thomas Lincoln hashtag the other Land of
Lincoln hashtag the other Land of
Lincoln hashtag the other Land of Lincoln
Lincoln
Lincoln Thomas was Abraham’s father and his land
Thomas was Abraham’s father and his land
Thomas was Abraham’s father and his land was Kentucky may bruh ham in fact was
was Kentucky may bruh ham in fact was
was Kentucky may bruh ham in fact was born there in 1809 but after a few years
born there in 1809 but after a few years
born there in 1809 but after a few years Thomas Lincoln up and moved his family
Thomas Lincoln up and moved his family
Thomas Lincoln up and moved his family to Indiana looking back on this Abraham
to Indiana looking back on this Abraham
to Indiana looking back on this Abraham Lincoln said that the primary reason for
Lincoln said that the primary reason for
Lincoln said that the primary reason for this move was a difficulty with land
this move was a difficulty with land
this move was a difficulty with land titles in Kentucky you see over the
titles in Kentucky you see over the
titles in Kentucky you see over the course of a few years Thomas Lincoln was
course of a few years Thomas Lincoln was
course of a few years Thomas Lincoln was involved in multiple disputes he had to
involved in multiple disputes he had to
involved in multiple disputes he had to move he lost land by 1816 he’d had
move he lost land by 1816 he’d had
move he lost land by 1816 he’d had enough why invests in the land
enough why invests in the land
enough why invests in the land if you risk losing it now at the time
if you risk losing it now at the time
if you risk losing it now at the time Kentucky was the frontier and war
Kentucky was the frontier and war
Kentucky was the frontier and war veterans and others in earlier years had
veterans and others in earlier years had
veterans and others in earlier years had been granted something called land
been granted something called land
been granted something called land patents in order to encourage settlement
patents in order to encourage settlement
patents in order to encourage settlement and part of the responsibility of
and part of the responsibility of
and part of the responsibility of claiming the land was it you had to
claiming the land was it you had to
claiming the land was it you had to provide a survey a meets and bounds
provide a survey a meets and bounds
provide a survey a meets and bounds survey a verbal description of your
survey a verbal description of your
survey a verbal description of your property lines using the physical
property lines using the physical
property lines using the physical features of the land like this survey of
features of the land like this survey of
features of the land like this survey of Abraham Lincoln’s boyhood home as it
Abraham Lincoln’s boyhood home as it
Abraham Lincoln’s boyhood home as it read in 1986 when it was sold to the
read in 1986 when it was sold to the
read in 1986 when it was sold to the National Park Service it refers to 36
National Park Service it refers to 36
National Park Service it refers to 36 trees three fences a bridge a drain a
trees three fences a bridge a drain a
trees three fences a bridge a drain a stump so you can imagine this kind of
stump so you can imagine this kind of
stump so you can imagine this kind of verbal description of the land could
verbal description of the land could
verbal description of the land could lead to problems see the early pioneers
lead to problems see the early pioneers
lead to problems see the early pioneers they were not professional surveyors and
they were not professional surveyors and
they were not professional surveyors and sometimes intentionally or
sometimes intentionally or
sometimes intentionally or unintentionally they would describe the
unintentionally they would describe the
unintentionally they would describe the same property
same property
same property using different features different trees
using different features different trees
using different features different trees and you get overlapping property lines
and you get overlapping property lines
and you get overlapping property lines and they gave it a name for this in
and they gave it a name for this in
and they gave it a name for this in Kentucky they called it shingling
Kentucky they called it shingling
Kentucky they called it shingling because it looked like roofing shingles
because it looked like roofing shingles
because it looked like roofing shingles overlapping each other now
overlapping each other now
overlapping each other now why were things so much better in
why were things so much better in
why were things so much better in Indiana well in Indiana the land with
Indiana well in Indiana the land with
Indiana well in Indiana the land with government owned to begin with and prior
government owned to begin with and prior
government owned to begin with and prior to sale it was professionally surveyed
to sale it was professionally surveyed
to sale it was professionally surveyed into rectangular townships and
into rectangular townships and
into rectangular townships and rectangular Lots and it’s one of these
rectangular Lots and it’s one of these
rectangular Lots and it’s one of these Lots
Lots
Lots the Thomas Lincoln bought in 1817 when
the Thomas Lincoln bought in 1817 when
the Thomas Lincoln bought in 1817 when he moved it’s the southwest quarter of
he moved it’s the southwest quarter of
he moved it’s the southwest quarter of section 32 it’s pretty simple isn’t it
section 32 it’s pretty simple isn’t it
section 32 it’s pretty simple isn’t it and to start contrast to the survey that
and to start contrast to the survey that
and to start contrast to the survey that we saw in Kentucky the certainty of
we saw in Kentucky the certainty of
we saw in Kentucky the certainty of these boundaries the clarity of these
these boundaries the clarity of these
these boundaries the clarity of these rights gave people the confidence to
rights gave people the confidence to
rights gave people the confidence to invest in the land
invest in the land
invest in the land it’s a why did Lincoln move because
it’s a why did Lincoln move because
it’s a why did Lincoln move because people prefer certainty to uncertainty
people prefer certainty to uncertainty
people prefer certainty to uncertainty they prefer Indiana to Kentucky and no
they prefer Indiana to Kentucky and no
they prefer Indiana to Kentucky and no offense to anyone from Kentucky out
offense to anyone from Kentucky out
offense to anyone from Kentucky out there it’s a lovely place but it
there it’s a lovely place but it
there it’s a lovely place but it provides a cautionary tale for
provides a cautionary tale for
provides a cautionary tale for discussing the patent system
discussing the patent system
discussing the patent system technological change and economic growth
technological change and economic growth
technological change and economic growth see just as land patents encourage
see just as land patents encourage
see just as land patents encourage settlement patents on inventions our
settlement patents on inventions our
settlement patents on inventions our government writes that encourage
government writes that encourage
government writes that encourage innovation so if you have a patent than
innovation so if you have a patent than
innovation so if you have a patent than for a period of years no one else can
for a period of years no one else can
for a period of years no one else can use your invention without your
use your invention without your
use your invention without your permission and if it’s useful in the
permission and if it’s useful in the
permission and if it’s useful in the marketplace you can make some money
marketplace you can make some money
marketplace you can make some money but the patent is not a reward it’s the
but the patent is not a reward it’s the
but the patent is not a reward it’s the incentive to develop the technology to
incentive to develop the technology to
incentive to develop the technology to begin with and to tell people about how
begin with and to tell people about how
begin with and to tell people about how it works it’s a twofer we get the
it works it’s a twofer we get the
it works it’s a twofer we get the technology and we get the information
technology and we get the information
technology and we get the information that we need to build on so this is part
that we need to build on so this is part
that we need to build on so this is part of what we call the market for
of what we call the market for
of what we call the market for technology and if there’s one thing that
technology and if there’s one thing that
technology and if there’s one thing that economists like it’s a market we love
economists like it’s a market we love
economists like it’s a market we love markets
markets
markets my wife doesn’t like it when I spend too
my wife doesn’t like it when I spend too
my wife doesn’t like it when I spend too much time alone with the market they’re
much time alone with the market they’re
much time alone with the market they’re beautiful they bring people together
beautiful they bring people together
beautiful they bring people together usually buyers and sellers and they
usually buyers and sellers and they
usually buyers and sellers and they trade and the key is that voluntary
trade and the key is that voluntary
trade and the key is that voluntary trade makes both parties better off and
trade makes both parties better off and
trade makes both parties better off and it literally creates wealth so suppose I
it literally creates wealth so suppose I
it literally creates wealth so suppose I want to sell you my car well okay this
want to sell you my car well okay this
want to sell you my car well okay this isn’t my car I’m not sure who told you
isn’t my car I’m not sure who told you
isn’t my car I’m not sure who told you that but let’s pretend this is a 1972
that but let’s pretend this is a 1972
that but let’s pretend this is a 1972 Ferrari Dino and let’s say it’s my car
Ferrari Dino and let’s say it’s my car
Ferrari Dino and let’s say it’s my car and then I value it for $100,000 but you
and then I value it for $100,000 but you
and then I value it for $100,000 but you value it for $150,000 so you can imagine
value it for $150,000 so you can imagine
value it for $150,000 so you can imagine that be fairly easy for us to agree on a
that be fairly easy for us to agree on a
that be fairly easy for us to agree on a price that would make both of us better
price that would make both of us better
price that would make both of us better off and if we can do that then
off and if we can do that then
off and if we can do that then regardless of the price we’ve just
regardless of the price we’ve just
regardless of the price we’ve just created $50,000 worth of wealth in the
created $50,000 worth of wealth in the
created $50,000 worth of wealth in the economy because we’ve taken an asset
economy because we’ve taken an asset
economy because we’ve taken an asset that was worth $100,000 and we’ve
that was worth $100,000 and we’ve
that was worth $100,000 and we’ve transformed it into one what’s worth a
transformed it into one what’s worth a
transformed it into one what’s worth a hundred and fifty thousand dollars just
hundred and fifty thousand dollars just
hundred and fifty thousand dollars just through trade alone that’s incredible
through trade alone that’s incredible
through trade alone that’s incredible it’s simple it’s beautiful its elegant
it’s simple it’s beautiful its elegant
it’s simple it’s beautiful its elegant and it works except when it doesn’t like
and it works except when it doesn’t like
and it works except when it doesn’t like when there’s a lot of uncertainty in the
when there’s a lot of uncertainty in the
when there’s a lot of uncertainty in the market like when people flee Kentucky
market like when people flee Kentucky
market like when people flee Kentucky for the certainty of Indiana so when I
for the certainty of Indiana so when I
for the certainty of Indiana so when I was a student we would shop at a grocery
was a student we would shop at a grocery
was a student we would shop at a grocery outlet this was a literal outlet for
outlet this was a literal outlet for
outlet this was a literal outlet for groceries overstocks discontinued
groceries overstocks discontinued
groceries overstocks discontinued products they had a scratch and dent
products they had a scratch and dent
products they had a scratch and dent section where some of the cans were
section where some of the cans were
section where some of the cans were missing their labels entirely we would
missing their labels entirely we would
missing their labels entirely we would call these maybe beans like they baby
call these maybe beans like they baby
call these maybe beans like they baby beans we’d get them home
beans we’d get them home
beans we’d get them home nope not beans it’s cream of something
but we didn’t care because we were poor
but we didn’t care because we were poor and no one can charge full price for
and no one can charge full price for
and no one can charge full price for these cans these are Kentucky cans
people prefer certainty to uncertainty
people prefer certainty to uncertainty they prefer Indiana cans to Kentucky
they prefer Indiana cans to Kentucky
they prefer Indiana cans to Kentucky cans and it’s the same in every market
cans and it’s the same in every market
cans and it’s the same in every market certainty makes the market work better
certainty makes the market work better
certainty makes the market work better but this is particularly important in
but this is particularly important in
but this is particularly important in the market for technology because
the market for technology because
the market for technology because historically and globally technology is
historically and globally technology is
historically and globally technology is the primary driver of economic growth it
the primary driver of economic growth it
the primary driver of economic growth it is a single thing that most
is a single thing that most
is a single thing that most distinguishes our lives today from those
distinguishes our lives today from those
distinguishes our lives today from those of our ancestors think just about how
of our ancestors think just about how
of our ancestors think just about how you got here today now imagine doing
you got here today now imagine doing
you got here today now imagine doing that trip with Archimedes or Joan of Arc
that trip with Archimedes or Joan of Arc
that trip with Archimedes or Joan of Arc or da Vinci or Thomas Lincoln you’d blow
or da Vinci or Thomas Lincoln you’d blow
or da Vinci or Thomas Lincoln you’d blow their minds well maybe not da Vinci he’d
their minds well maybe not da Vinci he’d
their minds well maybe not da Vinci he’d say yeah I thought of that but
say yeah I thought of that but
say yeah I thought of that but Archimedes be running around going
Archimedes be running around going
Archimedes be running around going Eureka Eureka Eureka think about my
Eureka Eureka Eureka think about my
Eureka Eureka Eureka think about my favorite underappreciated technology
favorite underappreciated technology
favorite underappreciated technology refrigeration and cooling obviously this
refrigeration and cooling obviously this
refrigeration and cooling obviously this makes our lives more comfortable as it
makes our lives more comfortable as it
makes our lives more comfortable as it is today but it goes way beyond that
is today but it goes way beyond that
is today but it goes way beyond that because refrigeration actually radically
because refrigeration actually radically
because refrigeration actually radically transformed our economy because it
transformed our economy because it
transformed our economy because it enabled the long distance hauling of
enabled the long distance hauling of
enabled the long distance hauling of perishable goods you know what it says
perishable goods you know what it says
perishable goods you know what it says store in a cool dry place yeah well
store in a cool dry place yeah well
store in a cool dry place yeah well there weren’t any except at the top of a
there weren’t any except at the top of a
there weren’t any except at the top of a mountain which was inconvenient so it
mountain which was inconvenient so it
mountain which was inconvenient so it now enabled this cross-country trade in
now enabled this cross-country trade in
now enabled this cross-country trade in food and what that did was enabled
food and what that did was enabled
food and what that did was enabled regions to specialize and take advantage
regions to specialize and take advantage
regions to specialize and take advantage of economies of scale that led to
of economies of scale that led to
of economies of scale that led to further advancements in planting and
further advancements in planting and
further advancements in planting and harvesting nationwide we got higher
harvesting nationwide we got higher
harvesting nationwide we got higher quality food we got more variety and
quality food we got more variety and
quality food we got more variety and lower prices which made everybody better
lower prices which made everybody better
lower prices which made everybody better off so let’s think a little bit about
off so let’s think a little bit about
off so let’s think a little bit about how this technology developed
how this technology developed
how this technology developed the first refrigeration units were these
the first refrigeration units were these
the first refrigeration units were these big beastly things that had the tendency
big beastly things that had the tendency
big beastly things that had the tendency to occasionally explode so they were
to occasionally explode so they were
to occasionally explode so they were first used to produce the ice that was
first used to produce the ice that was
first used to produce the ice that was used for shipping because you didn’t
used for shipping because you didn’t
used for shipping because you didn’t want one of these things blowing up your
want one of these things blowing up your
want one of these things blowing up your train but eventually the unit’s got
train but eventually the unit’s got
train but eventually the unit’s got smaller and safer and we could have
smaller and safer and we could have
smaller and safer and we could have refrigerated rail cars because we could
refrigerated rail cars because we could
refrigerated rail cars because we could combine refrigeration technology
combine refrigeration technology
combine refrigeration technology reliable power supply insulated
reliable power supply insulated
reliable power supply insulated containers rail cars dense technology
containers rail cars dense technology
containers rail cars dense technology got smaller got safer we can get
got smaller got safer we can get
got smaller got safer we can get refrigerated delivery trucks it got
refrigerated delivery trucks it got
refrigerated delivery trucks it got smaller and safer and we could put them
smaller and safer and we could put them
smaller and safer and we could put them in our homes and now gamers like my kids
in our homes and now gamers like my kids
in our homes and now gamers like my kids are putting them in their computers to
are putting them in their computers to
are putting them in their computers to cool down their video cards what will
cool down their video cards what will
cool down their video cards what will these kids think of next
these kids think of next
these kids think of next which is kind of the point because it’s
which is kind of the point because it’s
which is kind of the point because it’s their generation that will develop the
their generation that will develop the
their generation that will develop the next advances if they can pull
next advances if they can pull
next advances if they can pull themselves away from their video games
it’s the market for technology though
it’s the market for technology though that makes this happen because this
that makes this happen because this
that makes this happen because this pattern of innovation is common to all
pattern of innovation is common to all
pattern of innovation is common to all technological change we combine previous
technological change we combine previous
technological change we combine previous technologies into something new and then
technologies into something new and then
technologies into something new and then we improve it but the market for
we improve it but the market for
we improve it but the market for technology works best with more
technology works best with more
technology works best with more certainty in it which is why we want
certainty in it which is why we want
certainty in it which is why we want well-defined patent rights so patent
well-defined patent rights so patent
well-defined patent rights so patent examiner’s inventors together they
examiner’s inventors together they
examiner’s inventors together they define the boundaries patents inventors
define the boundaries patents inventors
define the boundaries patents inventors describe their technology and how to put
describe their technology and how to put
describe their technology and how to put it into practice patent examiner’s look
it into practice patent examiner’s look
it into practice patent examiner’s look it over and they make sure that the
it over and they make sure that the
it over and they make sure that the claims of the patent are clear and
claims of the patent are clear and
claims of the patent are clear and accurate they comply with the law but
accurate they comply with the law but
accurate they comply with the law but obviously this can be very challenging
obviously this can be very challenging
obviously this can be very challenging especially in emerging technologies
especially in emerging technologies
especially in emerging technologies because when something is truly new we
because when something is truly new we
because when something is truly new we may not even have the words for it
may not even have the words for it
may not even have the words for it so really inventors and patent
so really inventors and patent
so really inventors and patent examiner’s are like surveyors in a
examiner’s are like surveyors in a
examiner’s are like surveyors in a technological frontier
imagine trying to define a complicated
imagine trying to define a complicated space in this landscape using meets and
space in this landscape using meets and
space in this landscape using meets and bounds
bounds
bounds a verbal description when you can’t even
a verbal description when you can’t even
a verbal description when you can’t even see the entire picture because you’re on
see the entire picture because you’re on
see the entire picture because you’re on the frontier this is complicated
the frontier this is complicated
the frontier this is complicated you see in the patent system there are
you see in the patent system there are
you see in the patent system there are no neat little rectangles because we
no neat little rectangles because we
no neat little rectangles because we can’t survey the land ahead of time like
can’t survey the land ahead of time like
can’t survey the land ahead of time like we could in Indiana so because of this
we could in Indiana so because of this
we could in Indiana so because of this there is some inherent uncertainty and
there is some inherent uncertainty and
there is some inherent uncertainty and that leads a lot of people to argue that
that leads a lot of people to argue that
that leads a lot of people to argue that the patent system looks a lot like
the patent system looks a lot like
the patent system looks a lot like Lincoln’s Kentucky with overlapping
Lincoln’s Kentucky with overlapping
Lincoln’s Kentucky with overlapping property lines confusion and a market
property lines confusion and a market
property lines confusion and a market for technology that doesn’t work but
for technology that doesn’t work but
for technology that doesn’t work but there are others that suggest that
there are others that suggest that
there are others that suggest that despite done uncertainty the market for
despite done uncertainty the market for
despite done uncertainty the market for technology works more like Indiana so
technology works more like Indiana so
technology works more like Indiana so which is it
which is it
which is it Kentucky your Indiana well I’m an
Kentucky your Indiana well I’m an
Kentucky your Indiana well I’m an economist so I’m gonna say it depends
economist so I’m gonna say it depends
economist so I’m gonna say it depends because it can be either or both it
because it can be either or both it
because it can be either or both it depends on the technology and really
depends on the technology and really
depends on the technology and really maybe it doesn’t matter so much where we
maybe it doesn’t matter so much where we
maybe it doesn’t matter so much where we are as where we’re going see the people
are as where we’re going see the people
are as where we’re going see the people of Kentucky didn’t just throw up their
of Kentucky didn’t just throw up their
of Kentucky didn’t just throw up their hands and give up private property they
hands and give up private property they
hands and give up private property they were dealt a bad hand but they did what
were dealt a bad hand but they did what
were dealt a bad hand but they did what they could to mitigate so for them
they could to mitigate so for them
they could to mitigate so for them that meant professional surveyors
that meant professional surveyors
that meant professional surveyors permanent boundary markers better
permanent boundary markers better
permanent boundary markers better record-keeping these things reduced the
record-keeping these things reduced the
record-keeping these things reduced the uncertainty helped them to clean up the
uncertainty helped them to clean up the
uncertainty helped them to clean up the shingling from the Frontier Days
shingling from the Frontier Days
shingling from the Frontier Days so really regardless of where we start
so really regardless of where we start
so really regardless of where we start the policy goal is the same we should
the policy goal is the same we should
the policy goal is the same we should make the patent system more like Indiana
make the patent system more like Indiana
make the patent system more like Indiana now when it comes to policy I’m a big
now when it comes to policy I’m a big
now when it comes to policy I’m a big fan of what we call evidence-based
fan of what we call evidence-based
fan of what we call evidence-based policymaking but some policy questions
policymaking but some policy questions
policymaking but some policy questions are hard and evidence is often hard to
are hard and evidence is often hard to
are hard and evidence is often hard to get sometimes we come up against what I
get sometimes we come up against what I
get sometimes we come up against what I like to call policy based evidence
like to call policy based evidence
like to call policy based evidence making
making
making which is neither good policy nor good
which is neither good policy nor good
which is neither good policy nor good evidence but sometimes things are a
evidence but sometimes things are a
evidence but sometimes things are a little easier you see we know that
little easier you see we know that
little easier you see we know that people prefer certainty to uncertainty
people prefer certainty to uncertainty
people prefer certainty to uncertainty and it makes the market work better and
and it makes the market work better and
and it makes the market work better and the patent system that means high
the patent system that means high
the patent system that means high quality patent examination well-defined
quality patent examination well-defined
quality patent examination well-defined rights an easy way to fix mistakes
rights an easy way to fix mistakes
rights an easy way to fix mistakes transparency in the system especially
transparency in the system especially
transparency in the system especially transparency in ownership these things
transparency in ownership these things
transparency in ownership these things reduce uncertainty in the system as a
reduce uncertainty in the system as a
reduce uncertainty in the system as a whole for all technologies see the
whole for all technologies see the
whole for all technologies see the parable of the Land of Lincoln tells us
parable of the Land of Lincoln tells us
parable of the Land of Lincoln tells us how important it is to create certainty
how important it is to create certainty
how important it is to create certainty in the market for technology because it
in the market for technology because it
in the market for technology because it has the potential to create real and
has the potential to create real and
has the potential to create real and meaningful change and that brings
meaningful change and that brings
meaningful change and that brings economic opportunities to everybody it
economic opportunities to everybody it
economic opportunities to everybody it puts us on the road to Indiana and
puts us on the road to Indiana and
puts us on the road to Indiana and that’s where we want to be thank you
that’s where we want to be thank you
that’s where we want to be thank you [Applause]
”
Be First to Comment