Religion, Intellectual Property, and Innovation

This chapter discusses the consequences of informal intellectual property (IP) protection through religious rules on innovation. As religiosity is not necessarily accompanied by high levels of morality, the lack of formal IP institutions can be detrimental for technological progress. This fallacy is best visible in the case of Islam, which incorporates the protection of IP in its doctrine. Islamic societies are characterized by weak IP protection regimes, high rates of piracy, and low levels of innovation. The legal enforcement of IP rights is hence beneficial in the absence of trust in the society and cannot be substituted by religious beliefs.