Question

"More competition and stronger protection of intellectual property rights will speed up technological progress." Is this a recommendation you would make to a policy maker? Make your case

Answer 1

Ye, one would recommend a policymaker to ensure that there should be limited government intervention that would pave the way for greater competition and that there should be strong protection of intellectual property rights. Both these steps would contribute to the speeding up of technological progress.

It shall be noted that the economic health of nations and the competitiveness of firms is determined largely by the ability to develop, commercialize, and most importantly, to appropriate (or capture) the economic benefits from scientific and technological (S&T) innovations. Intellectual property rights (IPRs), such as patents and copyrights, are an important means used by firms to help protect their investments in innovation. They are legal instruments that have been used by governments for centuries to encourage industrial development and economic growth.

IPRs protect investments in innovation by granting the innovator a temporary monopoly on the use of innovation. This prevents rapid imitation that could cut into the innovator's returns and decrease the incentive to innovate.

The danger posed by inadequate IPR protection is that economic losses suffered by innovating firms could lead to a reduction in the rate of industrial innovation in the United States and other technologically advanced countries capable of generating innovations. A lower rate of innovation could, in turn, result in slower world economic growth, which would hurt all countries.