Why are too few resources devoted to the creation of knowledge
A)Profit-seeking firms undervalue knowledge in their pursuit of revenues.
B)Profit-seeking firms abuse their patents.
C)Profit-seeking firms tend to free-ride on the knowledge that others have developed.
D)Profit-seeking firms tend to rely on existing employee knowledge.

Question

Quizplus · Accepted Answer

Profit-seeking firms may underinvest in the creation of new knowledge because they can benefit from the knowledge created by others without incurring the costs themselves, a phenomenon known as "free-riding."

Why Are Too Few Resources Devoted to the Creation of Knowledge