R&D spillovers
A) reward research and development.
B) are nonrivalrous.
C) only benefit the inventor.
D) keep ideas within a country.

Question

Quizplus · Accepted Answer

R&D spillovers are nonrivalrous, which means that the benefits of the research and development can be enjoyed by others without reducing the benefits to the original inventor. This is because ideas and knowledge can be easily transmitted and shared, leading to positive externalities for society. However, this also means that the inventor may not fully capture the value of their innovation, which could result in underinvestment in R&D.

R&D Spillovers