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There is widespread belief that the emergence of giant industries has been accomplished by an equivalent surge in industrial research. A recent study of important inventions made since the turn of the century reveals that more than half were the product of individual inventors working alone, independent of organized industrial research. While industrial laboratories contributed such important products as nylon and transistors, independent inventors developed air conditioning, the automatic transmission, the jet engine, the helicopter, insulin, and streptomycin. Still other inventions, such as stainless steel, television, silicons, and plexiglass were developed through the combined efforts of individuals and laboratory teams.
Despite these findings, we are urged to support monopoly power on the grounds that such power creates an environment supportive of innovation. We are told that the independent inventor,
A. monopoly power creates an environment supportive of innovation
B. governmental protection for military research will do much to protect our dwindling resources
C. industrial giants, with their managerial bureaucracies, respond more quickly to technological change
D. firms with a small share of the market will aggressively pursue innovations because they are not locked into old capital equipment