INTELLECTUAL PROPERTY RIGHTS REGIME 63 response intellectual creations require collective action - there is common ownership to the good and it is created through government's efforts. By funding research activities, the government provides the public good and compensates for the potential market failure. This approach is advocated to be the right one by some scholars for scientific research. Second, the government subsidizes the private creation of intellectual ideas. Under this approach government subsidizes private research or grants the monetary awards to independent creators and acquires the ownership of the intellectual creations. Finally, the government recognizes intellectual ideas as private property and protects them with suitable laws. World Trade Organization (WTO) is one of the institutions brought into existence to complete the processes of liberalization and globalization taking place across the world. The above mentioned first two responses go against the spirit of free markets, therefore, these are ruled out under TRIPS. Though there is no denying that the economic interests of the developed countries have pushed forward very strongly the process of liberalization, the global dominance of the neo-classical economic theory over past few decades has contributed no less in legitimizing the processes of liberalization and globalization. The theory under certain conditions establishes the link between competitive ( free) market and efficiency. The rigour of the theorems establishing the existence of competitive equilibrium and linking of efficiency with the equilibrium attained in the competitive markets have played a significant role in establishing the pre-eminence of free market ideology, notwithstanding the restrictive and unrealistic character of the assumptions on which these theorems are based. The theory claims that the government intervention in the market does more harm than good, it hinders the attainment of efficient outcome which otherwise will follow in a freewheeling market. Therefore, it is argued, markets are best left-free and any government interventions are undesirable. As first two responses require government intervention, so these are declared to be inefficient, though there is no empirical or theoretical evidence to support this claim. The third response, i.e., recognition of IPRs as private property is advocated to be the best for economic and development of scientific research. The economic analysis of IPRs is greatly influenced by the free market ideology. The overwhelming majority of law and economics scholars believes that: 1) The efficiency criterion, without consideration of distribution, as a normative basis of economic