Do patents stimulate innovation? Really?

Question

My experience in the real world tells me that patents are used to stiffle competition and prevent innovation (drugs, software, and in the manufacture of machinery). Drug manufacturers spend far more on advertising than they do R&D. Also, some government research has been handed over to private companies who profit with little R&D of their own.

I know the theory promoted by politicians and large corporations. Do you buy it, or do you think it's bunk?

Answer 1

How do patents prevent innovation?  I submit that it is not physically possible for a patent to prevent innovation.  

What patents prevent is copying.  And, they don't even prevent copying.  If you want to use someones invention, pay them a royalty for a license to use it.  

There is nothing innovative about copying.

Answer 2

I don't know if your "experience in the real world" includes experience as an inventor, either self-employed or employed by a corporation.

Patents can be, and often are, used to stifle competition. Patent laws should be changed to eliminate these abuses. But that is only one side of the story.

In my experience, which includes a patent, many innovative products would never see the market without patent protection. Introducing an innovative product requires a huge amount of initial expense -- which does not have to be incurred by someone knocking off someone else's product. Why would a startup company, or an established company take that risk?