Many economists believe that most of the world's developed economies are currently in a debt supercycle, which increases the degree of illiquidity and deflation (and of course recession) in those economies over the time. Although the monetary policies could control the recessions in short and medium-term, but they fail in long-term. Almost all economists believe that the long-term remedy for recession is to empowering the private sector to be more productive and be able to create more jobs. But this empowerment is not a mere economical issue and it instigates many infrastructural issues including technical, legal, cultural, and political. This is why even the most advanced economies in the world are not successful to empower their private sectors in a desired manner.
But the good news is the coin has another side: The majority of private sector both in terms of GDP and population resides in SMB (small and midsize business) section and SMBs have a great advantage to enterprises, that is flexibility. They can easily be arranged, adapted, and managed to respond to specific needs, if they have the required resources available to them. Among different resources, two resources are more critical: money and technology.
In the time of recession, obtaining cheap money is not a hard thing to do as the monetary policies prescribe the reduction of interest rate to stimulate more borrowing and spending. But obtaining the technology, specially the original ones, is a hurdle for SMBs as they are costly to produce or buy and most SMBs cannot afford it. This is why most SMBs use second or third-hand technologies, and subsequently, this is why most SMBs are not powerful enough to strengthen the economy.
What is the solution? We suggest research-driven institutions like universities, enterprises, and research laboratories should utilize non-exclusive licensing models to be able to license their original technologies to many SMBs in an affordable price. In fact, the economy of scale lets them to sell their high-cost technologies in a relatively low-price to an enough number of SMBs. This is exactly what we call "sharing the creativity." Our suggested non-exclusive licensing model is the subject of my next post.