The overall effect of patents is difficult to assess but there’s arguments in both directions.
Patents mean that small niche companies can bring items onto the market safe in the knowledge that larger players won’t just copy them and drive them out of the market
The same goes to companies which just make copycat products (see Amazon today if you want to know what such a world looks like) in countries with cheap manufacturing and labor costs.
Patents mean others are incentived to become creative themselves, thus adding to the total level of innovation present in a market
Don’t forget that patents only last for 20y max, and you can license patents too.
The overall effect of patents is difficult to assess but there’s arguments in both directions.
Patents mean that small niche companies can bring items onto the market safe in the knowledge that larger players won’t just copy them and drive them out of the market
The same goes to companies which just make copycat products (see Amazon today if you want to know what such a world looks like) in countries with cheap manufacturing and labor costs.
Patents mean others are incentived to become creative themselves, thus adding to the total level of innovation present in a market
Don’t forget that patents only last for 20y max, and you can license patents too.