Appropriating value from "Leisure time" invention
Lee N. Davis, Jerome Davis · 2007
This paper investigates how “leisure time ” invention contributes to firm innovation. We seek to answer three main questions: (1) How can leisure time invention create value? (2) What motivates leisure time invention? (3) How can firms utilize leisure time invention? First, we examine the degree to which leisure time invention is a market or non-market activity, and propose a simple model connecting the knowledge generated in leisure time invention with the knowledge generated by the firm. Second, drawing on the distinction between direct and indirect utility goods, we contend that there is a higher proportion of direct utility involved in the performance of leisure time invention than is the case for paid inventive activities. Such inventors may also try to achieve material rewards for their efforts – but often, they do not. Third, because leisure time invention is highly motivated by direct utility, attempts to realize its commercial value can pose special challenges. We analyze what contractual arrangements can be implemented to govern the relationship between a firm and an employee who has made an invention of potential interest to the firm in her leisure time. We conclude by discussing some of the implications of the analysis.