True, but patents do help raise a lot of capital which can churn more innovations faster (also dumber, but still). It would be great if we could reduce the risk for investors without having to rely on IP.

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The dumber part is important, the misallocation of resources is a serious problem!

I recommend reading Against Intellectual Property by Stephan Kinsella, a lot of these questions are discussed there.

https://mises.org/library/book/against-intellectual-property