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 allows the innovator to protect their property rights and capture a significant portion of the created value. This can lead to increased motivation for innovation and investment in research and development. Option A is incorrect because a strong system of appropriability actually enables the innovator to capture a significant portion of the created value. Option B is incorrect because a strong system of appropriability allows the innovator to acquire and protect property rights. Option D is not necessarily true as the innovator may choose to commercialize their innovation independently.

If a Strong System of Appropriability Exists, the Innovator