Parallel Research, Multiple Intellectual Property Right Protection Instruments, and the Correlation among R&D Projects, September 2005

The choice of a research path in attacking scientific and technological problems is a significant component of firms’ R&D strategy. One of the findings of the patent races literature is that, in a competitive market setting, firms’ noncooperative choices of research projects display an excessive degree of correlation, as compared to the socially optimal level. The paper revisits this question in a context in which firms have access to trade secrets, in addition to patents, to assert intellectual property rights (IPR) over their discoveries. We find that the availability of multiple IPR protection instruments can move the paths chosen by firms engaged in an R&D race toward the social optimum.

Intellectual Property Rights and Crop-Improving R&D under Adaptive Destruction, June 2007

This paper studies how the strength of intellectual property rights (IPRs) affects investments in biological innovations when the value of an innovation is stochastically reduced to zero because of the evolution of pest resistance. We frame the problem as a research and development (R&D) investment game in a duopoly model of sequential innovation. We characterize the incentives to invest in R&D under two competing IPR regimes, which differ in their treatment of the follow-on innovations that become necessary because of pest adaptation. Depending on the magnitude of the R&D cost, ex ante firms might prefer an intellectual property regime with or without a “research exemption” provision. The study of the welfare function that also accounts for benefit spillovers to consumers—which is possible analytically under some parametric conditions, and numerically otherwise—shows that the ranking of the two IPR regimes depends critically on the extent of the R&D cost.

Effect of Wildlife Highway Warning Reflectors on Deer-Vehicle Accident, December 1984

he number of deer-vehicle accidents in Iowa and around the country has steadily increased during the past 30 years. This i s basically due to: ( 1 ) increased volume of traffic; 12) an expanding network of hard surface roads, especially 4 lane interstates; and (3) a general increase in deer populations. Initidtion of a 55 MPH speed limit in 1974 and gasoline shortages in 1975 reduced deer-vehicle accident rates briefly, but since 1975, rates have continued to climb. Various methods of reducinq these accidents have been attempted in other states. These include: instal lation of rc?flective devlres, deer crossing signs, fencing, underpasses, clearing right--of--waysa,n d controlled hunting to reduce deer population s i z e . These methods have met with varying degrees of success, depending on animal behavior, deet- population fluctuations, method used, topoyr-aphy, road-side vegetation, traffic patterns, and highway configuration. This project was designed to evaluate a new ntethod of reducing deer-vehicle accidents. There are qenerally 4 important aspects of deer-vehicle accidents: danger to human l i f e , vehicle damage, loss of a valuable wildlife resource, and cost of processing accident reports. In !owe, during 1983, there were over 15,OOC) reported deer--vehicle accidents and probably many more that were not reported (Gladfelter 1984). The extent of human injury or death in Iowa i s not known, but studies in southern Michigan show that human injur ies occurred in about 4% of the deer-vehicle accidents (A1 lcn and MrCullough 1976). T h i s would indicate that in Iowa there could have been 200 human injury cases from deer-vehicle accidents i n 1983. These injuries usual 1 occur from secondary collisions when motorists try to avoid a deer on the highway, and hit some other object Vehicle darnaye from these accidents can into thousands of dollars because of the high speed involved and the size of the animal. The total amount of vehicle damage occurring in Iowa is unknown, but if the average vehicle damage was between $500-$800 per accident, estimated property damage would be between $2 1/2--$4 million annually. The value of deer lost in these accidents cannot be estimated, but recreational potential of this natural resource is surely diminished for hunters and wildlife enthusiasts. Also, there ir a great deal of money spent by governmental agencies for manpower to process accident reports and remove dead animals from highways.

Use of Incentive/Disincentive Contracting to Mitigate Work Zone Traffic Impacts, 2012

Incentive/disincentive clauses (I/D) are designed to award payments to contractors if they complete work ahead of schedule and to deduct payments if they exceed the completion time. A previously unanswered question is, “Did the costs of the actual work zone impacts that were avoided justify the incentives paid?” This report answers that question affirmatively based on an evaluation of 20 I/D projects in Missouri from 2008 to 2011. Road user costs (RUC) were used to quantify work zone impacts and included travel delays, vehicle operating costs, and crash costs. These were computed using work zone traffic conditions for partial-closure projects and detour volumes and routes for full-closure projects. Conditions during construction were compared to after construction. Crash costs were computed using Highway Safety Manual methodology. Safety Performance Functions produced annual crash frequencies that were translated into crash cost savings. In considering an average project, the percentage of RUC savings was around 13% of the total contract amount, or $444,389 of $3,464,620. The net RUC savings produced was around $7.2 million after subtracting the approximately $1.7 million paid in incentives. In other words, for every dollar paid in incentives, approximately 5.3 dollars of RUC savings resulted. I/D provisions were very successful in saving RUC for projects with full-closure, projects in urban areas, and emergency projects. Rural, non-emergency projects successfully saved RUC but not at the same level as other projects. The I/D contracts were also compared to all Missouri Department of Transportation contracts for the same time period. The results show that I/D projects had a higher on-time completion percentage and a higher number of bids per call than average projects. But I/D projects resulted in 4.52% higher deviation from programmed costs and possibly more changes made after the award. A survey of state transportation departments and contractors showed that both agreed to the same issues that affect the success of I/D contracts. Legal analysis suggests that liquidated damages is preferred to disincentives, since enforceability of disincentives may be an issue. Overall, in terms of work zone impact mitigation, I/D contracts are very effective at a relatively low cost.

Iowa Field Conference on "D"-Cracking: Nov. 20 & 21, 1967

During the summer of 1963 the Materials Department noted the three to four ·year old concrete pavement on I-80 in Cass County was showing extensive surface cracking adjacent to joints and cracks. An examination of the pavement and a few cores from the cracked areas was made by the I.S.H.C. Materials Department and later by David Stark of the P.C.A. Additional surveys were conducted on other concrete pavement made with coarse aggregate from similar rock from two different sources. Blue-line cracking was found on some primary pavement and the indications of incipient cracks were seen on I-29 in Pottawattamie County, north of Council Bluffs. A good "D"-crack pattern is now evident. Surveys were then made of the entire Interstate concrete pavement. No other sections of Interstate were "D"-cracking, although some sections showed joint discoloration. None of these pavements, including the discolored sections, contained "D"-crack associated aggregates. At the same time as the Interstate survey additional pavements and sources were checked. Some "D"-cracking was noticed on certain sections of primary pavement 5-10 years old, in the vicinity of Waterloo and Cedar Rapids. The "D"-cracked pavement was from three aggregate sources, the Newton, Otis, and Burton Ave. quarries. Other pavements in this area that were older or from· different· coarse aggregate sources were not "D"-cracked. We believe that all the "D"-cracking is related, although dedolomitization is probably involved in the intermediate dolomite rocks.