This gets us into the toy model & its problems. I don’t think I understand your alternative model. I maybe don’t get what you mean by trading. Does one party giving money to another party in return for access to their technology or products count? If so, then I think my original model still stands: The leading project will be able to hoard technology/innovation and lengthen its lead over the rest of the world so long as it still has funding to buy the necessary stuff.
The reason I let other people use my IP is because they pay me money, with which I can develop even more IP. If the leading project declines to do this, then it will have less IP than any of its normal competitors. If the leading project’s IP allows it to be significantly more productive than everyone else, then they could have just taken over the world through the normal mechanism of selling products. (Modulo leaks/spying.) As far as I can tell, until you are a large fraction of the world, the revenue you get from selling lets you grow faster, and I don’t think the toy model really undermines that typical argument (which has to go through leaks/spying, market frictions, etc.).
I am skeptical that selling products is sufficient to take over the world, no matter how good the products are. Eventually you raise too much attention and get nationalized or taxed or copied.
In light of your critiques I intend to write a much better version of this post in the future. Thanks! I wrote this one during MSFP as part of their blog post day event, so it was kinda rushed and has lots of room for improvement. I’m very glad to see so much engagement though; it inspires me to make said improvements. Perhaps in the course of doing so I’ll change my mind.
The reason I let other people use my IP is because they pay me money, with which I can develop even more IP. If the leading project declines to do this, then it will have less IP than any of its normal competitors. If the leading project’s IP allows it to be significantly more productive than everyone else, then they could have just taken over the world through the normal mechanism of selling products. (Modulo leaks/spying.) As far as I can tell, until you are a large fraction of the world, the revenue you get from selling lets you grow faster, and I don’t think the toy model really undermines that typical argument (which has to go through leaks/spying, market frictions, etc.).
I am skeptical that selling products is sufficient to take over the world, no matter how good the products are. Eventually you raise too much attention and get nationalized or taxed or copied.
In light of your critiques I intend to write a much better version of this post in the future. Thanks! I wrote this one during MSFP as part of their blog post day event, so it was kinda rushed and has lots of room for improvement. I’m very glad to see so much engagement though; it inspires me to make said improvements. Perhaps in the course of doing so I’ll change my mind.