I don’t have a clear answer, but it’s really interesting to look at places like Shenzhen in China where copyright is largely ignored. The tech industry there is booming with competition, and good ideas are adopted (or stolen depending on how you look at it) quickly between products. In many ways it seems better for the consumer.
Edit: I might be muddying the waters here between copyright and patents, but it seemed relevant to bring up anyway given the discussion of capitalism.
Between this and gutter oil (Google it, or actually maybe don’t), it sure doesn’t leave me with a great impression of China and hygiene.