In contrast to government research and development, what effect does private sector R&D have on productivity?
A) Private sector R&D has more effect on productivity than government R&D does, because much government R&D focuses narrowly on military applications.
B) Private sector R&D has more effect on productivity than government R&D does, because much government R&D focuses narrowly on the service sector.
C) Private sector R&D has less effect on productivity than government R&D does, because the government is more motivated and able to hire better people and facilities.
D) Private sector R&D has less effect on productivity than government R&D does, because private firms tend to hold back on research when results are likely to be easily copied.

Question

In contrast to government research and development, what effect does private sector R&D have on productivity?  
A) Private sector R&D has more effect on productivity than government R&D does, because much government R&D focuses narrowly on military applications. 
B) Private sector R&D has more effect on productivity than government R&D does, because much government R&D focuses narrowly on the service sector. 
C) Private sector R&D has less effect on productivity than government R&D does, because the government is more motivated and able to hire better people and facilities. 
D) Private sector R&D has less effect on productivity than government R&D does, because private firms tend to hold back on research when results are likely to be easily copied.

Quizplus · Accepted Answer

Private sector R&D has more effect on productivity than government R&D does, because private firms are more motivated by profit and therefore focus on creating new products and processes that will increase productivity and efficiency. In contrast, government R&D often focuses narrowly on military applications or other areas that may not necessarily result in measurable increases in productivity. Additionally, private firms are often able to quickly bring new products to market, generating revenue and creating jobs.

In Contrast to Government Research and Development, What Effect Does