When does technology spillover occur
A)when a firm passes the high costs of technical research on to society through higher prices
B)when a firm's research yields technical knowledge that is used by society as a whole
C)when the government subsidizes firms engaged in high-tech research
D)when copyright laws prohibit firms from profiting from the research of others

Question

Quizplus · Accepted Answer

Technology spillover occurs when a firm's research yields technical knowledge that is used by society as a whole. This happens when the knowledge produced by a firm (through research and development) is not only used by the firm itself but also benefits other firms and individuals in the economy, either directly or indirectly. This can lead to positive externalities, such as increased productivity and innovation, and can benefit society as a whole.

When Does Technology Spillover Occur