A technology spillover occurs when one firm's research and production increase another firm's access to technological advances.

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A technology spillover refers to the transfer of knowledge or technology from one firm to another, resulting in an increase in the second firm's ability to access technological advances. This can occur in various ways, such as through collaboration, licensing agreements, or informal communication networks within industries. Spillovers can be beneficial for firms that receive them, as they can reduce research and development costs and improve the competitiveness of their products or services.

A Technology Spillover Occurs When One Firm's Research and Production