Dean Baker: Stiglitz Explains How Patent Protection Both Slows Growth and Increases Inequality

Very nice column from one of my favorite Nobel prize winning economists. Stiglitz explains some of the ways in which patent protection impedes growth and increases inequality.

It's great to see Stiglitz raising alternatives to patents for financing research, but I would disagree with the prize for patent buyouts that he proposes as being the best alternative. I have always preferred a system of direct upfront funding, which could be done through private firms operating on long-term contracts. In response to  a number of requests, here is the argument in brief. (Here's a little longer discussion.)