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Property Rights and Innovation
Abstract disponibile solo in lingua inglese
In this article various property rights arrangements are analysed as far as the problem of innovation is concerned. A distinction is made between "freedom to innovate" and the "ability to innovate". Following the principles of property right theory, the author shows that such arrangements as "co-determination" (in Western Germany), working collective (Yugoslavia), and central planning (Soviet Union) discourage innovation. The general conclusions are reached that alternative property rights do influence the flow of innovation, and that the right of ownership and the freedom of contract are more conducive to innovating activity than other institutional arrangements.