Empirical results justify substantial government subsidies to research based on the finding that the:
A) the private return to research is greater than the social return to research.
B) the private return to research is approximately equal to the social return to research.
C) the private return to research is less than the social return to research.
D) the private return to research is positive, but the social return to research is negative.

Question

Quizplus · Accepted Answer

Empirical results suggest that the social return to research often exceeds the private return. This means that the benefits to society as a whole from research are greater than the benefits captured by the entity conducting the research. This discrepancy justifies government subsidies to encourage more research investment, as the full value of the research is not fully internalized by the private sector.

Empirical Results Justify Substantial Government Subsidies to Research Based on the Finding