Final answer:
Radical innovations are typically introduced by new entrepreneurial ventures due to their innovative spirit and agility. Governments play a supportive role by providing intellectual property rights and funding for R&D to maintain inventors' motivation towards innovation. Competition and the need to secure social benefits from inventions also drive innovation.
Step-by-step explanation:
Radical innovations are usually introduced by new entrepreneurial ventures. These entities have the agility and the drive to create groundbreaking products and services that push industries forward. In contrast, incumbent businesses may be more risk-averse and focused on incremental improvements to existing products.
Governments can encourage innovation through policies that offer incentives for research and development, guaranteeing intellectual property rights, and facilitating cooperative research ventures between universities and companies. This ecosystem helps to create a balance that supports inventors and entrepreneurs in bringing new ideas to fruition while also ensuring that such innovations provide social benefits.
Competition plays a significant role in innovation, where private companies often underinvest due to the risk of new inventions being copied. However, the provision of intellectual property rights can help ensure inventors receive a greater share of the broader social benefits, serving as a powerful incentive for the pursuit of new inventions.