To maintain returns from research and development, firms
A) sponsor start-ups.
B) keep trade secrets.
C) use a fast-second strategy.
D) advocate creative destruction.

Question

Quizplus · Accepted Answer

Keeping trade secrets is a common way for firms to maintain returns from research and development. This can involve strict confidentiality agreements and limited sharing of information with others. By keeping their discoveries and innovations secret, they can retain a competitive advantage over others in the market.

To Maintain Returns from Research and Development, Firms