Patents represent
A)the protection given to new products by the law.
B)how R&D spending translates into new ideas.
C)the extent to which firms benefit from the results of their own R&D spending.
D)the rate of technological progress.

Question

Quizplus · Accepted Answer

Patents represent the legal protection given to new products or ideas, granting the owner exclusive rights to manufacture, use, or sell the invention for a certain period of time. Therefore, option A is the best choice. Option B is not entirely accurate since R&D spending does not always translate into new ideas that can be patented. Option C is partially correct, but patents do not necessarily guarantee benefits from R&D spending; firms may incur costs in filing and maintaining patents without reaping any rewards. Option D is also not accurate since patents do not directly measure the pace of technological progress; they are only one indicator of innovation.

Patents Represent