Patents against Prosperity

America is still in denial, but among economists and wonks I think the hard truth is settling in: we're not as rich as we thought we were and our prospects for future high growth rates aren't looking so great. America's last best hope for breaking free from what Tyler Cowen has called "the great stagnation" is the discovery of new "disruptive" technologies that would transform the possibilities of economic production in the way the fossil-fuel-powered engine did. As it stands, growth, such as it is, depends largely on many thousands of small innovations increasing efficiency incrementally along many thousands of margins. Innovation and invention is the key to continuing gains in prosperity...

This recent episode of Planet Money, "When Patents Attack", is an informative and entertaining primer on the way America's patent system squelches competition, slows innovation, and enables egregious predation through the legal system. Please listen to this. And then tell me that Nathan Myhrvold of Intellectual Ventures is not our age's authentic villainous robber baron, making a fortune gaming America's dysfunctional patent-law system to shake down would-be innovators...