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A decade after the State Street decision, more than 1,000 business method patents are granted each year. Yet, only 1 in 10 is obtained by a financial institution. Most business method patents are also software patents. Have these patents increased innovation in financial services? To address this question, we construct new indicators of research and development intensity based on the occupational composition of financial industries. The financial sector appears more research intensive than official statistics would suggest but less than the private economy taken as a whole. There is considerable variation across industries but little apparent trend. There does not appear to be an obvious effect from business method patents on the sector's research intensity. Looking ahead, three factors suggest that the patent system may affect financial services as it has electronics: (1) the sector's heavy reliance on information technology, (2) the importance of standard setting, and (3) the strong network effects exhibited in many areas of finance. Even today litigation is not uncommon; we sketch a number of significant examples affecting financial exchanges and consumer payments. The legal environment is changing quickly. We review a number of important federal court decisions that will affect how business method patents are obtained and enforced. We also review a number of proposals under consideration in the U.S. Congress. (JEL O31, O34, G20)

For Mohandas K. Gandhi, questions of technology were integral to his overall utopian vision. His future for India and for the world at large rested on the belief that technology, along with all the instrumentalities of society and culture, could be judged on the basis of their continuation to swaraj—dimensions of individual and community freedom. He was pragmatic; he changed notably over time in his specific views of "appropriate" technology and institutions. But his basic vision of the good society endured, being part of the sense of who he was, and what he was to do, for the concluding decades of his long life.