Spillovers cause the social benefits of research and development to be greater than the private benefits.

Question

Quizplus · Accepted Answer

Spillovers occur when the benefits of a company's research and development spill over to society as a whole, not just to the company itself. This can happen when the technology or knowledge created by the company is used by other companies, industries, or consumers, leading to wider economic and social benefits. As a result, the social benefits of research and development are typically greater than just the private benefits reaped by the company that conducted the research.

Spillovers Cause the Social Benefits of Research and Development to Be