When technology spillover occurs,
A) it is the government's responsibility to own firms that are engaged in high-tech research.
B) a firm's research yields technological knowledge that can then be used by society as a whole.
C) those firms engaged in technology research should be taxed by the government.
D) when firms invest in the latest production technology,the cost of that technology "spills over" to the prices consumers must pay for the product.

Question

Quizplus · Accepted Answer

Technology spillover refers to the positive externalities that occur when a firm's research yields technological knowledge that can then be used by society as a whole. This knowledge may lead to the development of new products, increased efficiency in production, and other benefits to society. It is not the government's responsibility to own firms engaged in high-tech research, nor should the firms be taxed for their research. The cost of new production technology may spill over to the prices consumers pay, but this is not the same as technology spillover.

When Technology Spillover Occurs