The CP encourages competition by making renewal of grants contingent on showing R&D was productive
Dean Baker et al, 2017 - co-director of the Center for Economic and Policy Research in Washington “Innovation, Intellectual Property, and Development: A BETTER SET OF APPROACHES FOR THE 21st CENTURY.” https://cepr.net/images/stories/reports/baker-jayadev-stiglitz-innovation-ip-development-2017-07.pdf //DH
If a centralised open system is designed effectively, it can preserve a major role for competition in the provision of research, for example by having long-term contracts that are subject to renewal. In this situation, companies would have a strong incentive to ensure that their spending was productive. This sort of system would also maximise incentives for disclosure of research findings.24 A contractor would be able to make the case for the value of its research if one of its discoveries turned out to provide the basis for an important drug developed by a competitor. Rather than trying to hide results from competitors, this sort of system would encourage researchers to circulate them as widely as possible.