This paper shows that economic recessions result from a scarcity of product innovations attributable to the flawed balanced approach of the current patent system. While rejecting the balanced approach, this paper proposes an innovative approach and suggests a number of reforms to build a new patent system, including redefining patent right, banning exclusive patent licenses and patent assignments, standardizing patent licenses, prolonging patent duration infinitely, and improving the patent quality standard. It is projected that the new patent system will lead to faster and smoother economic growth.