Technology spillover occurs when:
A)the firm's innovations allow it to establish monopoly power
B)new products by high-tech firms create harmful wastes
C)research by a firm creates innovations that are easily applied and used by others
D)patent laws are used to hinder other firms adopting new technology

Question

Quizplus · Accepted Answer

Technology spillover occurs when a firm's research and innovations create new ideas, processes, or products that can be easily diffused and used by other firms or industries, without any barriers or costs. This leads to a positive externality as it increases the productivity and efficiency of the economy as a whole. Hence, option C is the correct answer. The other answer choices (A, B, and D) are incorrect as they do not define technology spillover accurately.

Technology Spillover Occurs When