Patent Policy in an Innovation Driven Economy : Schumpeter's 'Innovation Wave' Perspective

Purpose – This paper applies Schumpeter's innovation theory approach to current patent policy. The theoretical analysis examines whether the patent policy harms to innovation level in the innovation driven economy. The aim of this paper is answering the question: Does current patent policy is stimulating or has destructive impact on economic development driven by innovations? Design/Methodology/approach – In this paper there were discussed how patent policy can influence the innovation level in Innovation Driven Economy. Author has focused on literature study and presented theoretical concept of “Patent Wave Curve”.Findings – Part I of this paper discusses the role of the patent policy in the economy and highlights policy concerns raised by actions of certain entities. Part II concludes with a brief overview of Schumpeter's innovation wave concept in the conditions of increased amount of patent applications. Author therefore suggest that the economic and patent policy debate should change its attention toward finding significant ways of identifying innovation destructive behaviors, instead of eliminating certain business models.Originality/value – With reference to Schumpeter's innovation theory author presented in paper “Patent Wave Curve” concept. Having regard Schumpeter's creative destruction, patent racing theory, the current number of patent applications and patent policy problems (such as NPEs or PAEs activity) there is a point the economy when without proper impulse it is pushed into “innovation stagnation trap”