Quote for the day

That society should protect, and thereby stimulate, investment in innovation—not just invention—has been held by many; but few were as consistent in their conclusions as Joseph A. Schumpeter, who on these grounds favored permitting monopolistic practices of various sorts. He argued that temporary security from competition, through cartels, patents, or other restraints, would encourage firms to put more venture capital into innovating investment. Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper, 1942), pp. 81-106.

“An Economic Review of the Patent System,” Fritz Machlup, United States Government Printing Office 1958, page 9, footnote 44.

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