How Intellectual Property Laws Influence Innovation
There are many factors that contribute to business success. The economy needs to be doing generally well, so that consumer spending is high, for example. And then there’s the matter of innovation. The biggest and best companies don’t sit still for too long: they look to push things forward, and develop new products. Of course, to do this is to take a risk — there is no such thing as a sure-thing when it comes to the business world.
Given the amount of time, energy, and money that’s involved in product development, companies need to be relatively sure that they’re going to receive a handsome return on their investment. But in order for this to happen, they need to know that their ideas and innovation are protected by law. If there are no laws in place, or there are laws but they’re not enacted, then a company runs the risk of having their new product copied by imitators. As such, you can argue that product development is contingent on governments helping to protect intellectual property.
That’s not to say that innovation doesn’t happen in countries that don’t have a strong legal framework for this type of thing. There are other ways around it. One is to make a product radically advanced, so that imitators couldn’t copy it even if they wanted to. Or you can develop new products quickly and outpace the competition.
To learn more about this issue, take a look at the infographic from the University of Alabama Birmingham outlined below.
Infographic design by University of Alabama Birmingham University of Alabama Birmingham