The free market best ensures innovation  Companies in the free market not only compete on price, the also compete on innovation. This is because innovation allows companies to ‘leapfrog the competition’ by either driving their competitors out of the market by suddenly being able to provide a similar good for a fraction of the cost, or by creating a completely new market for a good or service. In the latter case, the company can expect to reap monopoly-profits for a while until the competition catches up. The corollary of this is that this innovation literally destroys older, more inefficient businesses in a process called ‘creative destruction’ (Capitalism, socialism and democracy, 2008).  Currently well-known examples of this are Apples’ iPad, which created a market for tablet computers that didn’t exist before, Microsoft’s capturing of the PC-software market or Google’s search engine, which made the competition irrelevant overnight.  These monopolies are, by their nature, temporary: the benefits of creating a new market are so large, that companies structurally and continuously dedicate resources to ‘out-innovate’ the current monopolies and create a new temporary monopoly for themselves. In this way, innovation becomes the key driver of every business (The Free Market Innovation Machine, 2004).