The first characteristic is the strong promotion of private property rights and

Question

The first characteristic is the strong promotion of private property rights and protect it with strong copyright laws. It encourages the inventors and firms to spend upon the research & development as the success of these R&D expenses are well recognized and protected by the governance system of the USA economy. It is the one and most important characteristics that causes many patents to be filed on a yearly basis in the USA.
The second characteristic is the promotion of fair competition in the economy and protecting it with the Sarbanes-Oxley Act and Sherman Act, encourages smaller as well as bigger firms to innovate as their work will be duly protected from the arm twisting activities of the big MNCs. Such encouragement for the innovators creates a belief among them that US economy and its business environment are most suitable for them.

Besides, the federal government funding to the innovation projects also creates a supportive environment in the US economy for inventions.

Explanation / Answer

1- The United States is often known for having a highly innovative economy. Often, innovation requires making risky decisions and taking chances to "create" a new market. This has resulted in the U.S. merging as one of the strongest economies in the world. one way to encourage this type of behavior in markets is through policies, such as bankruptcy laws. Identify and summarize at least 2 other characteristics of an economy that would increase innovation and economic growth by encouraging potentially risky behaviors.

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