An inventor does not usually have the resources to get his product to market utilizing large scales of production which means that it would be quite easy for a large company to steal his idea, make it more cheaply than he can, and put him out of business. That takes away his incentive (aside from personal reasons) to invent since he will not be able to realize the financial benefits of what he comes up with. Patents give him protection and thus encourage more innnovation. If I can steal ideas from you I have no reason to invest in coming up with my own.
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