The ________ system encourages innovation by creating a powerful financial reward for creativity.
A) direct incentive
B) indirect incentive
C) patent
D) trade-off
E) tax credit

Question

Quizplus · Accepted Answer

Patents provide inventors with exclusive rights to their creations for a specified period, typically 20 years, and thus motivate them to innovate, create and invest in research and development. Patents offer financial rewards, in the form of licensing fees and the opportunity to sell their patented invention or process. Thus, the patent system encourages innovation by providing a powerful financial incentive for creativity.

The ________ System Encourages Innovation by Creating a Powerful Financial