Government policies such as safeguarding intellectual property rights, funding research and development, and facilitating partnerships between academia and industry are key to reducing business risks. Protectionism can also shield businesses but may trigger a 'race to the bottom' in regulatory standards.
One government policy that helps to reduce the risks for businesses is ensuring intellectual property rights. This helps to provide a secure environment for businesses to innovate by ensuring their ideas and products are protected by law. Furthermore, government assistance with the costs of research and development, as well as fostering cooperative research ventures between universities and companies, can incentivize innovation, which is vital for business growth and sustainability.
In addition to these policies, enforcing protectionism can also protect domestic businesses by reducing or blocking imports which compete with local industries. However, this can also lead to a race to the bottom, where businesses may relocate to countries with lower environmental or other standards, which places pressure on all countries to lower their standards. These policies must be balanced to ensure both competitive markets and the maintenance of high standards.