Prizes solve for internalizing positive externalities.

Given the modest nature of this proposal, the broader prescription arising from this Article is greater integration of patent and nonpatent mechanisms in a holistic policy framework to internalize negative externalities from technological innovation. In recent years, scholars have fruitfully explored the importance of nonpatent policy levers in supplementing the patent system and promoting innovation. For instance, government grants, tax breaks, and prizes fill sizable gaps in the patent system in generating and distributing new technologies,293 Notably, these are "affirmative" mechanisms that encourage innovative activity. In the language of externalities, they are subsidies aimed at helping innovators internalize more of the positive externalities of their creations.