Final answer:
The idea that technological diffusion increases the competitive benefits of patents is false, especially in fast-paced industries where technology becomes obsolete quickly, making patents less relevant for innovation.
Step-by-step explanation:
The statement that the rapid rate of technological diffusion has increased the competitive benefits of patents is false. In industries where technology evolves rapidly, such as biotechnology or semiconductor design, the lifespan of a technological innovation can be very short due to the swift pace of advancements.
Therefore, the protection afforded by patents may become almost irrelevant as newer inventions render previous ones obsolete in a short amount of time.
Furthermore, whereas patents do offer incentives for innovation by providing a temporary monopoly to creators, the rapid progression of technology means that patented inventions can quickly become outdated.
Additionally, patents can sometimes create barriers to entry for other innovators and delay the diffusion of technology across borders, potentially slowing down wider economic development.