Related to the Economics in Practice on p. 624: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to
A) adopt other countries' policies until it reaches the frontier of the rest of the world.
B) support its own innovative efforts until it reaches the frontier of the rest of the world.
C) first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts.
D) first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies.

Question

Quizplus · Accepted Answer

The study suggests that if a country is far from the technological frontier, it should first adopt other countries' policies to catch up, and as it approaches the frontier, it should shift to supporting its own innovative efforts. This is because initially, the country may not have the necessary knowledge, expertise, or resources to develop new technologies, so it can benefit from adopting other countries' policies. However, once the country gets closer to the frontier, it may need to tailor its policies and investments to its own specific needs and strengths, rather than just imitating others. Therefore, a combination of both strategies may be the most effective in the long run.

Related to the Economics in Practice on P