Knowledge Disclosure, Patent Management, and the Four-Stroke Engine Business

Abstract

The appropriateness of patent systems has been largely discussed and has led to substantial theoretical debates and empirical analyses. One of the most significant arguments in favor of patents is that they enable knowledge disclosure, which would compensate their social cost. Through an evolutionary approach to a key case study based on a radical innovation and business – the four-stroke engine invented by the German Nicolaus August Otto in 1876 – we provide new and fresh insights on the disclosure issue, on patent management hidden strategies, and on patent institutions and controversies.