If a strong system of appropriability exists, the innovator
A)cannot capture a significant portion of the created value.
B)cannot acquire the property rights of its innovation.
C)can capture a significant portion of the created value.
D)should try to sell its innovation to a large firm.

Question

Quizplus · Accepted Answer

A strong system of appropriability refers to the ability of an innovator to capture the value created by their innovation. Therefore, if such a system exists, the innovator can indeed capture a significant portion of the created value. Option A is incorrect, as it contradicts the definition of appropriability. Option B is also incorrect because a strong system of appropriability implies that the innovator has managed to acquire property rights. Option D is not necessarily true and provides no information about the innovator's ability to appropriate value.

If a Strong System of Appropriability Exists, the Innovator