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Bretton Woods Agreement

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Bretton Woods Agreement

Definition: The Bretton Woods Agreement is the result of a 1944 meeting in Bretton Woods, New Hampshire involving delegates from forty-four countries following World War II. The resulting agreement established a fixed rate exchange system, the International Monterey Fund (IMF) and the World Bank. This also included an exchange rate agreement, also known as the gold exchange standard. (Satterlee, 2009, p.157).

Summary: A Bretton Woods for innovation

This article by author Stephen Ezell highlights one of the issues overlooked upon the conclusion of the 1994 meeting, policies governing innovation. “We need a new international framework that sets clear parameters for what constitutes fair and unfair innovation competition, creating new institutions (and updating old ones) that maximize innovation” (Ezell, 2011, para. 1). Ezell begins by defining the current policies in play concerning innovation and providing examples. Ezell breaks down countries’ policies into four categories, “Good”, “Bad”, “Ugly” and "Self-destructive". “"Good" innovation policies include increasing investments in scientific research; offering research and development tax credits; welcoming highly skilled immigrants; providing strong science, technology, engineering, and math education; and deploying advanced information and communications technologies” (Ezell, 2011, para. 4). “"Bad" policies are strategies like import substitution industrialization that a country believes will help it, but in fact do more harm than good to the country's economy” (Ezell, 2011, para. 6). “"Ugly" policies include intellectual property theft or forced technology transfers as a condition of market access (designed to promote innovation in one nation to the detriment of others)” (Ezell, 2011, para. 5). Ezell exemplifies the “Ugly” by explaining how China requires all multinational...

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