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Legal Restraints On Innovation in the USSR

Legal Restraints On Innovation in the USSR 243 LEGAL RESTRAINTS ON INNOVATION IN THE USSR GEORGE M. ARMSTRONG, JR. Associate Professor, New York Law School 1. Introduction . Since the economic reforms of 1965, which placed greater emphasis on the profitability of Soviet socialist enterprises, material incentives as a stimulus to productivity and accurate economic accounting of the costs of production, members of the business and legal communities in the USSR have become in- creasingly concerned about dysfunctional aspects of their system of dissemi- nation of innovation among enterprises.' The sources of their dissatisfaction with this system are current regulations requiring enterprises which pioneer innovation to pay virtually all costs of research and development, irrespective of the utility of the innovation to the national economy or the extensiveness of eventual implementation of the- discovery, laws-requiring the pioneer to assist other enterprises in implementation of the innovation and an inadequate apparatus for disseminating information about innovations to enterprises which might adopt them. According to Soviet scholars, the system's failure to disseminate innovation adequately results in national research and development costs, forty to sev- enty percent of which spring from duplication of effort.2 As Klebaner ob- serves, the chief reason for the lagging dissemination of technology "is http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Socialist Law (in 1992 continued as Review of Central and East European Law) Brill

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Publisher
Brill
Copyright
© 1983 Koninklijke Brill NV, Leiden, The Netherlands
ISSN
0165-0300
eISSN
1875-2985
DOI
10.1163/187529883X00234
Publisher site
See Article on Publisher Site

Abstract

243 LEGAL RESTRAINTS ON INNOVATION IN THE USSR GEORGE M. ARMSTRONG, JR. Associate Professor, New York Law School 1. Introduction . Since the economic reforms of 1965, which placed greater emphasis on the profitability of Soviet socialist enterprises, material incentives as a stimulus to productivity and accurate economic accounting of the costs of production, members of the business and legal communities in the USSR have become in- creasingly concerned about dysfunctional aspects of their system of dissemi- nation of innovation among enterprises.' The sources of their dissatisfaction with this system are current regulations requiring enterprises which pioneer innovation to pay virtually all costs of research and development, irrespective of the utility of the innovation to the national economy or the extensiveness of eventual implementation of the- discovery, laws-requiring the pioneer to assist other enterprises in implementation of the innovation and an inadequate apparatus for disseminating information about innovations to enterprises which might adopt them. According to Soviet scholars, the system's failure to disseminate innovation adequately results in national research and development costs, forty to sev- enty percent of which spring from duplication of effort.2 As Klebaner ob- serves, the chief reason for the lagging dissemination of technology "is

Journal

Review of Socialist Law (in 1992 continued as Review of Central and East European Law)Brill

Published: Jan 1, 1983

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