Free Market's Key Role in Innovation

Free markets are essential in accelerating innovation. Free markets oftentimes cause companies in similar markets to compete with each other. This fierce competition provides an incentive for businesses to innovate with the intent to hopefully steal a portion of their competitor's market share. 

As each business continues to innovate and find new ways to improve their product or service, the average quality of that product or service increases. Thus causing improvements in efficiency, durability, performance, and many other aspects of products and services. The overall average increase in business quality leads to a higher standard of living among the people and a more efficient society.

Businesses that maintain a monopoly rarely innovate or improve their product or service, because they do not need to compete with other businesses for customers. A wonderful example of a lack of innovation is Comcast. Comcast may continue to innovate their products and services, but they feel no need to improve their customer service. In fact, Comcast is known throughout the United States for its less than exceptional customer service. If the world is to continue to innovate at its currently astounding rate, markets must remain free.