Supercharging Innovation

Unlocking tomorrow’s civilization today

Innovation is difficult, not only because it often requires a heavy investment of time and money, but also engenders a significant risk of failure. Aside from “first mover advantages,” absent any incentives for spending that time and money, it is rational for inventors to wait for someone else to invent something, then copy it.

Of course, in a world of copycats, little progress is made. So policymakers have sought to incentivize technological progress through policy. Generally, these incentive structures have fallen into three basic categories: Direct Investment, Prizes, and Patents.

Prizes have historically had some success in promoting breakthrough innovations. In a prize system, the government or a third party sets out a goal with a pre-prescribed award, often monetary. The first participant to achieve the goal receives the award.

The Longitude Act of 1714, for example, offered a £20,000 prize for a practical method of determining longitude to a half degree accuracy at sea. The prize spurred innovation in timekeeping and ultimately made sea navigation much safer and cheaper.

Prizes have their drawbacks too, however. Specifically, they require the prize-issuing authority to be able to foresee what innovations society needs, and devise a method of compensation that will be sufficiently enticing and motivating. This requires…

Related posts:

Every day I look for a way to slow down time, to enjoy my books and writing more, but I haven’t found the solution yet. And at the same time, like many of us I think, I’m looking forward to the New…

There was a time when business or marketing profits were minimal; It convinced even a few people with their earnings. But it’s 2022! Now the door of unlimited earning has been opened with online…

Wellness is described as the process of exhibiting healthy habits daily which will enable you to attain better physical and mental health outcomes. Wellness is a very vital and important part of our…