Question

Can you think of any reason inherent in a capitalist economy that would foster innovation?

Answer 1

Individual rights recognition involves the banishment of physical force from human interactions: in essence, rights can only be breached by force. No person or group can initiate the use of physical force against others in a capitalist society. The sole role of the state in such a community is the task of defending the rights of man, that is, the job of defending him from physical force; the state acts as the agent of the right of self-defense of man, and can use force only in retaliation and only against those who initiate its use; therefore the government is the means of putting the retaliatory use of force under objective control.

American economy's history is one of the tremendous advances connected with notable innovation. Real income per individual in America was an average of four percent of what it is today two hundred years ago, the average American lived forty years, and thirty percent of kids did not survive until their fifth birthday. There was hardly any imagination of electricity, cars and telephones, let alone computers and air travel. No antibiotics or vaccines existed–and no knowledge of illness caused by germs.

It had not yet invented the term "scientist." But scientists such as Isaac Newton had started to uncover basic science foundations that would underpin two centuries of practical inventions. In the words of President Lincoln, the U.S. Constitution enabled Congress to generate efficient intellectual property rights–helping to add "the fuel of interest to the genius fire." Subsequently, Americans seized on the Industrial Revolution–an explosion of innovation–propelling a youthful nation with democratic ideals to unprecedented financial heights and setting other countries a strong example. In short, innovation is ultimately tied to America’s well-being and to our conception of the essential “American character

Capitalism inspires competition as it forces other firms to adapt. It is a cyclical method in this sense because competition comes from capitalism and is a breeding ground for innovation.All this is created possible by personal property. Not only have Steve Jobs, Jony I ve, and other Apple employees been able to produce their own thoughts, but more importantly, they have made their thoughts a reality. In societies that embrace capitalism, there will be a general trend towards innovation. The sky is the limit due to the capacity of individuals to allocate time and money where they see fit.

Simply put, innovation is the key to chasing economic well being made possible by capitalism.