O'Reilly logo

Solomon's Knot by Robert D. Cooter, Hans-Bernd Schäfer

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 5

The Property Principle for Innovation

For an economy to grow, according to the preceding chapter, law and policy must channel peoples’ pursuit of wealth into making it, not taking it from its makers. For entrepreneurs, innovation is risky and success is profitable. When innovators can keep much of the wealth that they make, greed overcomes fear, and entrepreneurs enrich the nation by enriching themselves. The property principle for innovation is the proposition that the makers of wealth should keep much of it.

Do entrepreneurs enjoy most of the gains from innovation, or do workers benefit through rising wages? In successful modern economies, growth compounds unimaginably fast and almost everyone benefits. In countries where productivity ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required