All of the following increase the expected rate of return on R&D expenditures except
A)patents.
B)trademarks.
C)imitation by others.
D)trade secrets.

Question

Quizplus · Accepted Answer

Imitation by others does not increase the expected rate of return on R&D expenditures; instead, it can decrease it by allowing competitors to benefit from the original firm's R&D without incurring the same costs. Patents, trademarks, and trade secrets all protect intellectual property and innovations, thereby potentially increasing the returns on R&D by limiting competition and imitation.

All of the Following Increase the Expected Rate of Return