Private Innovation in the Public Interest
Professor Colleen Cunningham studies why and how companies accomplish innovations that benefit the public, such as in pharmaceuticals and alternative energy. She sees a role for government in clarifying the guardrails on what’s allowed, but that’s not enough to get great outcomes. It’s also important for government – and for civil society at a broad level – to make sure that the incentives reward innovators given the risks they must endure. Yet even that’s not enough. It’s also important to make sure that the right amount of competitive behavior arises. You want some secrecy as innovators protect against imitation, but enough knowledge-sharing for insights to accumulated. The formula: Guardrails + incentives – excessive competition.
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