Invention vs. Innovation

by on February 20, 2007 · 28 comments

Mike Masnick draws a distinction I hadn’t given much thought to before:

Over at Computerworld, Mike Elgan has written up a great piece highlighting how the iPhone is a fantastic piece of innovation that really has very little new in it. As we pointed out when we questioned Apple’s claim to 200 patents around the iPhone, the multi-touch interface isn’t new and has been publicly demonstrated numerous times. Elgan points to that video as well as other examples of how almost all of the “new” things in the iPhone have actually been around for quite some time–but that what’s special about the iPhone is that it will really be the first time that such features and tools are available to the general public, and how it’s then likely to move those same features from research labs into all sorts of common computing applications. That’s great for everyone–but it’s about innovation, not invention, and it seems like the market can do a great job rewarding such innovation without resorting to patent-based monopolies.

If you think about it, Apple’s strength really doesn’t come from inventing things. I’ve been a Mac guy for pretty much my whole life, and so during college I was one of those people who’d watch the Steve Jobs keynote every year. Almost every time, my techie officemates would see a new Apple product and say “hey, there’s nothing new there. Linux has been able to do that for 6 months.”

Of course, to do it on Linux, you typically had to purchase some special hardware, download a tarball, compile it from source, tweak a config file, and then hope that the software supported your particular hardware combination. Apple doesn’t invent much, but they do take technologies that are currently only available to people who are intimately familiar with gcc and vi, and makes them accessible to ordinary people.

This is even true of Apple’s most legendary products. Everyone has heard the story of how the original Macintosh used concepts largely copied from prototypes that Xerox was too clueless to bring to market. There was nothing at all new about the iMac other than curvy colored plastic. (It did introduce USB to the Mac market, but USB wasn’t an Apple invention.) And of course there’s the iPod, which attracted a big yawn from the tech world because it didn’t offer any features that weren’t already available on other MP3 players. In all these cases, what Apple did is come up with just the right combination of features, put together with a great attention to detail, so that the whole was more than the sum of its parts.

In contrast, when Apple has invented something genuinely new, it’s tended to be far less successful for the company. The Lisa was in many ways more innovative than the Mac, but it was killed by ludicrously high prices. The Newton had a lot of breakthrough technology, and it’s long since been abandoned. FireWire was an Apple invention, but it’s been relegated to niche status in high-end DV applications–even iPods don’t support it any more.

All of which suggests that, at least in the computer industry, invention is often the easy step. There are thousands of grad students right now working to build breakthrough inventions, many of which won’t make it to consumers markets for several years. But those inventions aren’t very useful by themselves, because typically only a tiny fraction of the population has the technical skills to do anything with them. (and the money that’s often required to buy the high-priced components) What’s really needed is the know-how to take inventions and make them understandable and affordable to ordinary consumers. That is not something the patent system does a good job of protecting. But fortunately, it appears that the market does a good job of rewarding that kind of innovation without much help from the patent system.

  • http://weblog.ipcentral.info/ Noel Le

    Tim, the distinction between innovation and invention is rather important. See Joshua Lerner and Marco Iansiti, Evidence Regarding Microsoft and Innovation, AEI-Brookings Joint Center Publication (2002).

    Invention, by itself is not as important as innovation. F. Scott Kieff, in the paper you talked about earlier, argued that society will benefit more from the commercialization of inventions (which turns them into innovations) than by inventions themselves, because of: 1) positive externalities resulting from the diffusion, refinment process, 2) consumer access to new technologies.

    I would not downplay invention as being necessarily easy either. Note that the creation of early Internet technologies took place only with billions of dollars in DARPA funding, and entailed several decades of improvements until DARPA enlisted private firms to help refine the technologies.

    PS- I don’t see how your post relates to patents. For instance, one can take either your post or Masnick’s post, and use them to support the role of patents; since Apple was able to commercialize its technologies into a sleek mass market product and non-patenting firms were not.

  • http://weblog.ipcentral.info/ Noel Le

    Tim, the distinction between innovation and invention is rather important. See Joshua Lerner and Marco Iansiti, Evidence Regarding Microsoft and Innovation, AEI-Brookings Joint Center Publication (2002).

    Invention, by itself is not as important as innovation. F. Scott Kieff, in the paper you talked about earlier, argued that society will benefit more from the commercialization of inventions (which turns them into innovations) than by inventions themselves, because of: 1) positive externalities resulting from the diffusion, refinment process, 2) consumer access to new technologies.

    I would not downplay invention as being necessarily easy either. Note that the creation of early Internet technologies took place only with billions of dollars in DARPA funding, and entailed several decades of improvements until DARPA enlisted private firms to help refine the technologies.

    PS- I don’t see how your post relates to patents. For instance, one can take either your post or Masnick’s post, and use them to support the role of patents; since Apple was able to commercialize its technologies into a sleek mass market product and non-patenting firms were not.

  • http://www.techliberation.com/ Tim Lee

    Noel, how would a lack of patents have prevented Apple from bringing the iPhone to market?

  • http://www.techliberation.com/ Tim Lee

    Noel, how would a lack of patents have prevented Apple from bringing the iPhone to market?

  • http://weblog.ipcentral.info/ Noel Le

    Tim,

    Its difficult to pin-point direct causality in innovation. Granted, the American capital market/VC system, education system, specialty research centers and patent system contribute to innovation. But none of these alone would facilitate innovation.

    I was not claiming that Apple would not have created the iPhone without patents. Rather, I was commenting on how your post suggested that Apple has successfully commercialized a set of technologies in which it holds patents. I was just saying its hard to read how you were making the argument that patents were not important to Apple.

    PS- I would argue that patents will enable Apple to improve on the iPhone. Lets wait and see.

  • http://weblog.ipcentral.info/ Noel Le

    Tim,

    Its difficult to pin-point direct causality in innovation. Granted, the American capital market/VC system, education system, specialty research centers and patent system contribute to innovation. But none of these alone would facilitate innovation.

    I was not claiming that Apple would not have created the iPhone without patents. Rather, I was commenting on how your post suggested that Apple has successfully commercialized a set of technologies in which it holds patents. I was just saying its hard to read how you were making the argument that patents were not important to Apple.

    PS- I would argue that patents will enable Apple to improve on the iPhone. Lets wait and see.

  • http://weblog.ipcentral.info/ Noel Le

    PPS- the process of Apple improving the iPhone would be called diffusion, whereby an innovator releases one generation of a product, takes in consumer signals that would suggest means of increasing societal adoption, and then refines the product in a later generation. This whole process is part of commercialization. See Hall, Bronwyn H., “Innovation and Diffusion” (January 2004), NBER Working Paper No. W10212.

    Whether Apple will be more likely to invest in the diffusion process because of the exclusivity enabled by its patents is something we can witness in real-time, if Tim continues on his Apple binge.

  • http://weblog.ipcentral.info/ Noel Le

    PPS- the process of Apple improving the iPhone would be called diffusion, whereby an innovator releases one generation of a product, takes in consumer signals that would suggest means of increasing societal adoption, and then refines the product in a later generation. This whole process is part of commercialization. See Hall, Bronwyn H., “Innovation and Diffusion” (January 2004), NBER Working Paper No. W10212.

    Whether Apple will be more likely to invest in the diffusion process because of the exclusivity enabled by its patents is something we can witness in real-time, if Tim continues on his Apple binge.

  • http://www.techliberation.com/ Tim Lee

    Noel, I have no doubt that Apple’s patents are helpful to Apple, but that’s not the issue. High steel tariffs are helpful to the steel industry, but that doesn’t make them good policy.

    You stated that “Apple was able to commercialize its technologies into a sleek mass market product and non-patenting firms were not.” I assumed you were suggesting that Apple’s patents allowed Apple to commercialize its iPhone, and would not have been able to do so otherwise. If that’s not what you were suggesting, then what was your point?

  • http://www.techliberation.com/ Tim Lee

    Noel, I have no doubt that Apple’s patents are helpful to Apple, but that’s not the issue. High steel tariffs are helpful to the steel industry, but that doesn’t make them good policy.

    You stated that “Apple was able to commercialize its technologies into a sleek mass market product and non-patenting firms were not.” I assumed you were suggesting that Apple’s patents allowed Apple to commercialize its iPhone, and would not have been able to do so otherwise. If that’s not what you were suggesting, then what was your point?

  • http://weblog.ipcentral.info/ Noel Le

    Tim, I was merely tracing the fact-pattern of your post when I said that Apple successfully commercialized technologies in the iPhone and previous inventors with similar technologies were not. The extent of a correlation between Apple’s achievement and patents is yet to be seen, but you have to admit that a firm that commercializes a technology benefits the public more than one that merely invents it.

  • http://weblog.ipcentral.info/ Noel Le

    Tim, I was merely tracing the fact-pattern of your post when I said that Apple successfully commercialized technologies in the iPhone and previous inventors with similar technologies were not. The extent of a correlation between Apple’s achievement and patents is yet to be seen, but you have to admit that a firm that commercializes a technology benefits the public more than one that merely invents it.

  • Herman Swartz

    Plenty of half truths and half-witted comments in your article.

    You really need to do some research, not just repeat FUD. If the Mac interface was a simple rip-off of Xerox Park’s ideas, then why would anyone get credit for airplane flight or why not have DaVince get credit for the helicopter after all he drew a crude drawing like one.

    This brain off pablum no doubt excites the anti-innovation, anti-patent and anti-Apple zealots but truthiness does not make truth unless your a moron like Bush.

  • Herman Swartz

    Plenty of half truths and half-witted comments in your article.

    You really need to do some research, not just repeat FUD. If the Mac interface was a simple rip-off of Xerox Park’s ideas, then why would anyone get credit for airplane flight or why not have DaVince get credit for the helicopter after all he drew a crude drawing like one.

    This brain off pablum no doubt excites the anti-innovation, anti-patent and anti-Apple zealots but truthiness does not make truth unless your a moron like Bush.

  • http://weblog.ipcentral.info/ Noel Le

    Exactly….

  • http://weblog.ipcentral.info/ Noel Le

    Exactly….

  • Louis Wheeler

    Innovation and invent mean almost the same thing– new. It’s just that we use invent to apply to new devices while innovation can also mean new methods and customs. What Apple does is create devices and systems that are difficult to imagine coming from any other company.

    It’s easy to dismiss an innovation. All you have to say is that someone else thought of it first while ignoring the effort necessary to make an idea practical. The desktop on Xerox’s Star looked nothing like or worked like the Macintosh. The Xerox “mouse” looked like a trackball. The Mac’s desktop was much better and more practical than the Star’s. And the Mac cost $2,500 while the Star was $15,000.

    Besides, Xerox got its idea for the Star from Bart Engelhard’s seminal work in the fifties and sixties. Apple only got a one day show and tell for its million dollars in stock. It got no hardware designs or software. Apple had to go and innovate its own way of doing things and Apple’s way was often better. The point is that it is damned hard to get things right so that they are useful in ways that no one else dreamed of. The Macintosh did that. Apple continues to do that.

    The iPhone will do that, too. Why? Because it’s nothing like the other smart phones. It’s a computer more powerful than most from five to ten years ago. It has a shortened version of Mac OSX 10.5 in it. There is little that the iPhones won’t be able to do, eventually. Mostly, the iPhone will expose how rotten the current Smartphones are. And it will do it in a way that seems intuitive. People will ask, “This seems so easy. Why didn’t phones work like this before?” A lot of hard work and thinking are necessary to make things appear easy.

    Great design, good looks, near perfect execution, ease of use and fine craftsmanship are nothing new, but they are damned rare.

    Bravo, Apple, you did it again.

    If it were easy to do what Apple did, then why weren’t the Smartphones designed like this, years ago?

  • Louis Wheeler

    Innovation and invent mean almost the same thing– new. It’s just that we use invent to apply to new devices while innovation can also mean new methods and customs. What Apple does is create devices and systems that are difficult to imagine coming from any other company.



    It’s easy to dismiss an innovation. All you have to say is that someone else thought of it first while ignoring the effort necessary to make an idea practical. The desktop on Xerox’s Star looked nothing like or worked like the Macintosh. The Xerox “mouse” looked like a trackball. The Mac’s desktop was much better and more practical than the Star’s. And the Mac cost $2,500 while the Star was $15,000.



    Besides, Xerox got its idea for the Star from Bart Engelhard’s seminal work in the fifties and sixties. Apple only got a one day show and tell for its million dollars in stock. It got no hardware designs or software. Apple had to go and innovate its own way of doing things and Apple’s way was often better. The point is that it is damned hard to get things right so that they are useful in ways that no one else dreamed of. The Macintosh did that. Apple continues to do that.



    The iPhone will do that, too. Why? Because it’s nothing like the other smart phones. It’s a computer more powerful than most from five to ten years ago. It has a shortened version of Mac OSX 10.5 in it. There is little that the iPhones won’t be able to do, eventually. Mostly, the iPhone will expose how rotten the current Smartphones are. And it will do it in a way that seems intuitive. People will ask, “This seems so easy. Why didn’t phones work like this before?” A lot of hard work and thinking are necessary to make things appear easy.



    Great design, good looks, near perfect execution, ease of use and fine craftsmanship are nothing new, but they are damned rare.



    Bravo, Apple, you did it again.



    If it were easy to do what Apple did, then why weren’t the Smartphones designed like this, years ago?

  • Blinx

    Apple may have seen the graphical user interface first at Xerox Parc, but the difference between what they saw and the Lisa/Mac GUI they came up with was huge. In the process of fleshing out many innovative features from scratch, Apple mastered the “genre,” if you will.

    That’s why the iPhone is years ahead of the LG Prada, and why Windows will always feel like an inferior version of the Mac OS.

  • Blinx

    Apple may have seen the graphical user interface first at Xerox Parc, but the difference between what they saw and the Lisa/Mac GUI they came up with was huge. In the process of fleshing out many innovative features from scratch, Apple mastered the “genre,” if you will.

    That’s why the iPhone is years ahead of the LG Prada, and why Windows will always feel like an inferior version of the Mac OS.

  • Michael Sullivan

    I think the point is that innnovators (in the apple sense) normally have (as a prerequisite to being able to innovate in the sense we are talking about — making new technology available to the masses) the marketing power to make plenty of money without patent protection. The inventor, sans patents, OTOH, if he does not have access to that kind of marketing channel or a robust and efficient market for selling inventions to companies that do, is liable to end up with nothing for efforts that eventually make somebody a lot of money.

    The problem with the patent system is that it is currently protecting a lot of processes and ideas that don’t really fit with its original purpose. It has required increasingly deep understanding of a wide variety of fields to make those distinctions properly, and the patent office has largely punted.

  • Michael Sullivan

    I think the point is that innnovators (in the apple sense) normally have (as a prerequisite to being able to innovate in the sense we are talking about — making new technology available to the masses) the marketing power to make plenty of money without patent protection. The inventor, sans patents, OTOH, if he does not have access to that kind of marketing channel or a robust and efficient market for selling inventions to companies that do, is liable to end up with nothing for efforts that eventually make somebody a lot of money.

    The problem with the patent system is that it is currently protecting a lot of processes and ideas that don’t really fit with its original purpose. It has required increasingly deep understanding of a wide variety of fields to make those distinctions properly, and the patent office has largely punted.

  • http://weblog.ipcentral.info/ Noel Le

    Michael, the patent system has long entailed two aspects in promoting the “Progress of Science and Useful Arts. Number 1 is the ex ante justification for patents, which is commonly known as the incentive theory that aims to resolve the problem of public goods. A lot of literature aiming to debunk the importance focuses on this prong. Number 2 is the ex post justification for patents; scholars from Mark Lemley, Edmund Kitch, John Duffy, Kenneth Dam and F. Scott Kieff have written on this prong- patents help commercialization and the diffusion of innovation. From what I’ve seen on TLF, there is sometimes utter misunderstanding regarding the second ex post aspect of patents; which is odd, considering that the Bayh-Dole Act, the patenting practices of IBM, Microsoft, Apple and most academic literature supporting patents refers to the ex post basis for them.

    Herman, Louis, Blinx, Michael; you folks put up some great posts.

  • http://weblog.ipcentral.info/ Noel Le

    Michael, the patent system has long entailed two aspects in promoting the “Progress of Science and Useful Arts. Number 1 is the ex ante justification for patents, which is commonly known as the incentive theory that aims to resolve the problem of public goods. A lot of literature aiming to debunk the importance focuses on this prong. Number 2 is the ex post justification for patents; scholars from Mark Lemley, Edmund Kitch, John Duffy, Kenneth Dam and F. Scott Kieff have written on this prong- patents help commercialization and the diffusion of innovation. From what I’ve seen on TLF, there is sometimes utter misunderstanding regarding the second ex post aspect of patents; which is odd, considering that the Bayh-Dole Act, the patenting practices of IBM, Microsoft, Apple and most academic literature supporting patents refers to the ex post basis for them.

    Herman, Louis, Blinx, Michael; you folks put up some great posts.

  • Anonymous

    that is not really worth to read

  • Anonymous

    that is not really worth to read

  • http://poddatiy15.blogspot.com Gray

    Hello, my name is Petro, I liked yours blog, can get acquainted and with mine

  • http://poddatiy15.blogspot.com Gray

    Hello, my name is Petro, I liked yours blog, can get acquainted and with mine

Previous post:

Next post: